1. MISSOURI Non-Resident TAX Returns
Kansas AARP Tax Aide Training - TY2018

2. Kansas AARP Tax Aide Training - TY2018
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 AARP Tax Aide Training - TY2018

3. Kansas AARP Tax Aide Training - TY2018
Why file MO NR return?
KS residents with earnings in MO
May get refund of tax paid to MO
May owe tax on money earned in MO
May receive KS credit for taxes paid to MO
May receive 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 - TY2018

4. Kansas AARP Tax Aide Training - TY2018
MO Non-Resident Taxes
Income typically seen from MO
MO W-2 Income
MO Schedule 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 AARP Tax Aide Training - TY2018

5. 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 AARP Tax Aide Training - TY2018

6. Kansas AARP Tax Aide Training - TY2018
212-XX-XXXX
945.63
255-XX-XXXX
Jefferson County School District
12210 Robin Road
Oskaloosa, KS 66066
397.17
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 XX-XXXX
2017
Kansas AARP Tax Aide Training - TY2018

7. Kansas AARP Tax Aide Training - TY2018
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 XX-XXXX KCMO
2017
Kansas AARP Tax Aide Training - TY2018

8. Kansas AARP Tax Aide Training - TY2018
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
Fed wages - MO wages = KS 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 AARP Tax Aide Training - TY2018

9. Kansas AARP Tax Aide Training - TY2018
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 AARP Tax Aide Training - TY2018

10. 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.
For KCMO earnings taxes paid.
Add to Missouri income taxes paid.
Kansas AARP Tax Aide Training - TY2018

11. 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 AARP Tax Aide Training - TY2018

12. MO Non-resident in TaxSlayer
Unless there is 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 AARP Tax Aide Training - TY2018

13. MO Non-resident in TaxSlayer
Click “Begin” to enter self-employment income and gambling income
Kansas AARP Tax Aide Training - TY2018

14. MO Non-resident in TaxSlayer
Enter self-employment in Business Income/(Loss). Enter gambling income in “Other Income/(Loss)
Kansas AARP Tax Aide Training - TY2018

15. 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 AARP Tax Aide Training - TY2018

16. 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 AARP Tax Aide Training - TY2018

17. Kansas AARP Tax Aide Training - TY2018
MO-NR State Tax Forms
Pertinent forms for KS residents
MO 1040
Line 14 – LTHC deduction (direct entry)
Line 30 – MO income tax liability
Line 46 – MO income tax refund
Line 49 – MO income tax due
MO-NRI
Line F – Business Income
Line O – Other Income (Enter Gambling Winnings
Line U – Total MO income
Kansas AARP Tax Aide Training - TY2018

18. Kansas AARP Tax Aide Training - TY2018
Now it’s YOUR turn…
Questions?
Comments?
Concerns?
Kansas AARP Tax Aide Training - TY2018