If someone works in another state does that person pay the other state's income tax or the one they live in.
2007-12-28 05:12:48 · 11 answers · asked by Jeriod T 2 in Business & Finance ➔ Taxes ➔ United States
It depends.
To know the accurate answer, you must first consult the state instructions to find out if there is a reciprocity agreement between the state you live in and the state you work in. If so, your income is all considered earned in the home state.
However, with the states you have mentioned there is no reciprocity. This means you will need to file both a Missouri (non-resident) and Illinois (resident) income tax returns. The tax that you pay to Missouri should be considered a credit against your Illinois taxes. (It looks like Line 19 of the IL-1040.)
With some exception, you are paying taxes at your state's rate but writing checks (or having withholding) to two different governments.
2007-12-28 05:31:19 · answer #1 · answered by Molly 6 · 1⤊ 1⤋
You complete your federal return first. Then complete the Missouri return second as a Non-Resident. Then you complete your Illinois return and complete a CR form (Credit of Tax Paid to Other States). You do it in that order. If either Kansas City or St. Louis is taking city taxes then you claim that as well on your Illinois CR form. I just went back to your previous answers and every one of them doesn't have a clue what-so-ever. I know. My wife works in Missouri (St. Louis) and we lived in Illinois. I have been doing it this way since 1989.
2007-12-28 11:37:57 · answer #2 · answered by Gary 5 · 2⤊ 0⤋
Unless one state specifically indicates that you do not have to pay taxes, you will pay taxes in both states. I live in Mo. and work in Kansas. I have to pay taxes in both states.
2007-12-28 05:28:32 · answer #3 · answered by Jeepguy 1 · 2⤊ 1⤋
The company you work for takes out taxes for both states. You have to file in both states. Generally you get back most of the money from the state you work in.
2007-12-28 05:22:46 · answer #4 · answered by Sophie B 7 · 0⤊ 2⤋
Usually they have to pay taxes to both states.
2007-12-28 05:17:17 · answer #5 · answered by Katie H 6 · 2⤊ 1⤋
i've got faith there's a undeniable quantity of time you ought to be living in a state to be seen a resident of that state, attempt googling that guidance, even with the actuality that i've got faith that's the two 6 months or a 12 months.
2016-10-20 04:42:29 · answer #6 · answered by esquinaldo 4 · 0⤊ 0⤋
You pay taxes in the state you reside in.
2007-12-28 05:15:22 · answer #7 · answered by Anonymous · 0⤊ 3⤋
i do beleive its the one they live in,
I think, cant say for sure
like 90 percent positive " i used to work in il and i live in mo"
2007-12-28 05:17:06 · answer #8 · answered by hyperjuize 3 · 0⤊ 3⤋
you will need your 1040 for federal. your mo form. your illinois form. your mo nri form. your illinois cr form
2016-04-06 17:34:46 · answer #9 · answered by Mis GloGlo 1 · 0⤊ 0⤋
both
2007-12-28 05:15:28 · answer #10 · answered by Anonymous · 3⤊ 1⤋