Out of State Tax Question

[HARMCYN]

Taking a new job where I will be employed in Missouri but work from home in Iowa- anyone know the policy on which state withholding form I fill out-? Missouri is not a reciprocal state, so if I have to fill out the MO form-where do I designate the taxes paid for my Iowa form? Please tell me I don't have to pay them twice.

 

[alarson]

Taking a new job where I will be employed in Missouri but work from home in Iowa- anyone know the policy on which state withholding form I fill out-? Missouri is not a reciprocal state, so if I have to fill out the MO form-where do I designate the taxes paid for my Iowa form? Please tell me I don't have to pay them twice.

It seems this is the most relevant- https://tax.iowa.gov/expanded-instructions/out-state-tax-credit

Though working from home makes it interesting. Do you owe to MO at all in that case as you both live and work in iowa?

 

[djkent01]

My daughter works for a DSM company - remotely in OK. Taxes are filed and paid as an OK resident. No IA return or tax liability. And I'm a CPA that prepares her taxes.

Besides, the W2 will indicate the state the wages were earned. In your case, it will be Iowa.

 

[mywayorcyway]

My daughter works for a DSM company - remotely in OK. Taxes are filed and paid as an OK resident. No IA return or tax liability. And I'm a CPA that prepares her taxes.

Besides, the W2 will indicate the state the wages were earned. In your case, it will be Iowa.

I have worked from home for seven years for an out of state company. The above has always been my situation as well.

 

[HARMCYN]

Thanks a bunch!

 

[boone7247]

Thanks a bunch!

I will just add that you should be sure your employer is going to treat you as an Iowa employee. That means they need to register with the state for payroll. If they don't do this you will get a W-2 as if you were a Missouri employee. Which is wrong but will be a headache for you and ultimately them.

If they already have Iowa employees it shouldn't be a problem.