MISSOURI Non-Resident TAX Returns Kansas STTC Training - TY2017

Kansas STTC Training - TY2017 Who must file If you are required to file a federal return and you have Missouri income of $600 or more, you must file a Missouri Nonresident return. If you don’t have a filing requirement, but you had Missouri tax withheld, you must file a Missouri Nonresident return to get a refund of your Missouri withholding. Kansas STTC Training - TY2017

Why file MO NR return? KS residents have earnings in MO May get refund of tax paid to MO May owe tax on money earned in MO Can get KS credit for taxes paid to MO Can get KS credit for taxes paid to KCMO We live in border counties. Residents on either side cross state lines to work and play. Kansas AARP Tax Aide Training

Kansas STTC Training - TY2017 MO Non-Resident Taxes Income typically seen from MO MO W-2 Income MO Sch C Income Including Uber drivers Gambling winnings Items Deductible in MO Long Term Health Care Insurance KS used to allow credit for Long Term Care premiums, but no longer does. MO does, however, and if a MO-NR form is to be filed, it is worthwhile to ask the TP if they have a long term care contract. In TaxSlayer, go to Other Deductions/Long-Term Care and enter the dollar amount of premiums paid during the tax year. Kansas STTC Training - TY2017

Typical W2 forms with MO tax Standard W-2 Employer, employee info Federal Wages, tax, etc. Fed and KS/MO tax withheld “Phantom” W-2 (2nd W-2) Same employer, employee info MO tax withheld – and/or KCMO earnings tax withheld Kansas STTC Training - TY2017

Kansas STTC Training - TY2017 212-XX-XXXX 9456.34 945.63 255-XX-XXXX 9456.34 Jefferson County School District 12210 Robin Road Oskaloosa, KS 66066 397.17 9456.34 137.12 Mary B. Bryant 8705 Somersby Way Your City, State and Zip Code DD 564.58 X Standard W-2: Boxes 1-6 have federal wage and tax withholding information. Boxes 15 – 20 have KS state wages and deductions KS 22-2XX-XXXX 9456.34 574.50 2017 Kansas STTC Training - TY2017

Kansas STTC Training - TY2017 212-XX-XXXX 255-XX-XXXX Jefferson County School District 12210 Robin Road Oskaloosa, KS 66066 Mary B. Bryant 8705 Somersby Way Your City, State and Zip Code “Phantom” W-2: Boxes 1-6 are blank. Boxes 15 – 20 have MO state wages and deductions. Employer information is identical to the standard W-2. MO 22-2XX-XXXX 2236.48 126.83 2236.48 22.36 KCMO 2017 Kansas STTC Training - TY2017

Kansas STTC Training - TY2017 MO “Phantom” W2 forms Complete one W2 form in TaxSlayer Check – EIN and employer name match Enter all standard info KS tax info goes on 1st state tax line Enter all “phantom” info on same form MO tax on 2nd state tax line KCMO earnings tax Sum of KS + MO wages = Fed wages Manual adjustment suggested TW automatically subtracted the MO wages from the KS wages so that the sum of the two equaled the federal wages. TS does not do this. I don’t think it makes a difference, but on exiting the W-2 field in TS, an error message pops up saying the sum of the two state wages is greater than the federal wages. Kansas STTC Training - TY2017

Kansas STTC Training - TY2017 KCMO Earnings Tax Residents of KCMO pay 1% of all income as earnings tax Non-residents of KCMO pay 1% of all income earned in KC Reported on W-2 as “local tax” Enter Local Name = “KCMO” Kansas STTC Training - TY2017

Credit for taxes paid to other states This credit may be claimed If your KAGI includes income earned in another state(s) AND You were required to pay income tax to the other state(s) on that income. It may be claimed for income taxes paid to MO and earnings taxes paid to KCMO. Kansas STTC Training - TY2017

MO Non-resident in TaxSlayer Complete the Federal forms, except for education credits Complete the Kansas return Add a Missouri return to the state section Complete Basic Information and enter resident state as Kansas Complete MO return Complete education credits on Federal return Kansas STTC Training - TY2017

MO Non-resident in TaxSlayer Unless you have self employment income, gambling income or any KCMO earnings tax, TaxSlayer will automatically complete the non-resident MO return and calculate the “Credit for Taxes Paid to Other States” on the K-40. If there IS self employment and/or gambling income, these will need to be added to the MO return. Kansas STTC Training - TY2017

MO Non-resident in TaxSlayer Click “Begin” to enter self-employment income and gambling income Kansas STTC Training - TY2017

MO Non-resident in TaxSlayer Enter self-employment in Business Income/(Loss). Enter gambling income in “Other Income/(Loss) Kansas STTC Training - TY2017

MO Non-resident in TaxSlayer TaxSlayer does not add automatically include KCMO earnings tax when calculating taxes paid to other states. This must be adjusted manually. TaxSlayer will print a worksheet to show the calculation for taxes paid to other states. Credit will show on K-40, line 13 If Earnings Tax is reported on a W2 or Sch C, it must be entered manually for correct credit by KS. However, the full amount of credit allowed by KS may already be satisfied by the W2 taxes paid. Before proceeding with the adjustment for ET, look for the worksheet for “OTHER STATE CREDITS” – it will follow after the Sch S or K40H form.   If Line 8 = Line 7, no further credit can be obtained. If Line 8 is less than Line 7, the difference is the amount of additional credit allowed by KS for tax paid to MO. Now look at K40 Line 20 “Total Tax Balance.” If zero, no further credit is allowed. If manual adjustment is needed, follow these steps: Go to State Section on sidebar menu. -- Select KS return – Edit -- Continue past first page with county and school district info -- If “Congratulations” page appears, Select Yes to go to the KS return From the Kansas State Return menu -- Select Credits -- Credit for taxes paid to other stat -- 1) Credit for taxes paid to another state -- Select Other State = MO -- AGI from Other State = MO-NRI Line U -- Tax paid to other state = MO 1040 Line 33 + ET paid -- Continue back to Kansas State Return menu Check the Other State Credit worksheet to compare Lines 7 and 8. Kansas STTC Training - TY2017

Maximum Credit Allowable Credit for taxes paid to other states is non-refundable It cannot exceed KS tax liability It is determined by the ratio of MO income to KS income Kansas STTC Training - TY2017

Kansas STTC Training - TY2017 MO-NR State Tax Forms Pertinent forms for KS residents MO 1040 Line 18 – LTHC deduction (direct entry) Line 34 – MO income tax liability Line 50 – MO income tax refund Line 53 – MO income tax due MO-NRI Line F – Business Income Line O – Other Income (Enter Gambling Winnings Line U – Total MO income Kansas STTC Training - TY2017

Kansas STTC Training - TY2017 Now it’s YOUR turn… Questions? Comments? Concerns? Kansas STTC Training - TY2017