Any tax gurus?

gregokdisney

Mouseketeer
Joined
Mar 23, 2009
Messages
246
This is driving me crazy. My husband and I live in Illinois. He works in MO, I work in Illinois. I earned no income in IL, but both Turbotax AND H & R Block online software is calculating our MO taxes on our combined taxable income. I think this is an error in the software - MO cannot tax me on my income, can it, since I didn't earn any income in MO?
 
Did you indicate that you were a non-resident in Missouri? I've filed for several years in both Missouri and Kansas with TurboTax. All my income came from Kansas but I was a Missouri resident. TurboTAx always asked at the beginning about your state of residence. You might want to go back to the beginning and make sure you answered the state of residency questions correctly.

Jill in CO
 
Cheshire Figment is a retired CPA who still does taxes (I know there are others on the DIS, but I remember his user name). He will probably see this thread, or you might be able to send him a PM.

The PPs suggestion about verifying residency is a good one. :thumbsup2
 
I'm sorry that I can't directly help on this. I do not use any of the online programs. I use Intuit's Professional-Level Turbo Tax, which costs me well over $300.

I have no problem in handling clients where they work in multiple states during the year, where they work in one state and live in another, or they move from one state to another during the year. However, I do know what the rules are and also how it is handled in the program that I use; I also know when do do overrides if the program does something I don't want it to do.

But in general there are two possibilities, depending on the state's agreements.

One possibility is full reciprocity, such as people who live in DC, MD or VA and work in one of the other of the jurisictions report all income to their home state and the employer will take out withholding from the person's home state, not the state they work in.

The other is where there is no reciprocity, such as I have a client who lives in LA but works in MS. All income is reported to and taxed in LA. A non-resident return is filed in MS and the tax is computed on the MS income as well as certain prorations of deductions and exemptions. Then there is a credit against the LA taxes for the MS taxes which are paid.

But any time you are dealing with multiple states it almost calls for profesional assistance. If you are comfortable with doing your own return you can do the current year based on the way that a professional handled a prior year return that was similar.
 

Thanks everyone. I have done our taxes using Turbotax for years with this same scenario, but this year it kept showing me a summary and it said taxable income - which was obviously our combined income. When I printed it out though, it was correct and the same as last year. I think the interface was just different from last year.

I appreciate everyone's help.
 


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