Missouri State Income Taxes

does not make any sense bro, just call their tax office and explain bro, Prime is a very shady company men so you better find out what is going on men.

 

Missouri is a real PITA on their income taxes. I live in Missouri so I can give you some insight on how they operate based on my situation and having prepared their tax returns.

If I live in Missouri and work in Texas, they will tax my Texas income. They do it because they look at your income on your federal tax return. Then they give you credit for tax paid to another state on income earned in another state. Since Texas has no income tax, there is no credit, so you pay Missouri income tax on all your Texas income.

If the state I earned the income in had a tax rate lower than Missouri, Missouri would collect the difference after applying the credit.

Now if I move to Texas and have income from Missouri, I will still have to pay tax on it in Missouri, because it is Missouri source income to them. In my way of thinking, income is not only wages but contractor pay too.

Roadmedic is much smarter than me when it comes to taxes. Still I'm not sure why it makes a difference if it is Form 1099 or Form W-2. Maybe he can explain the difference. If he can't, I would say based on my knowledge of Missouri's tax system those of you living in Texas might well owe Missouri income tax on Missouri source income.

Regardless of whether you owe it or they think you owe it, if you don't hit it head on and take care of it they will get judgments and tax liens on you and your assets and it will be on your credit reports.