Missouri Credit for Taxes Paid to Another State
The Missouri Credit for Taxes Paid to Another State allows Missouri residents to claim a credit on their Missouri state tax return for income taxes paid to another state. This credit helps prevent double taxation when income is earned in multiple states.
Eligibility and Purpose
- Available to Missouri residents who paid income tax to another state on income earned there.
- Reduces Missouri tax liability by the amount of tax paid to the other state, subject to limitations.
- Must be claimed on Form MO-1040, Line 31 (Resident Credit) or Line 32 (Missouri Income Percentage), depending on filing status and income sources.
How to Claim the Credit
To claim the credit, you must:
- Complete your Missouri return (Form MO-1040) first, including Lines 1 through 30.
- File the other state’s return to determine the amount of income tax liability imposed by that state.
- Enter the amount of income tax liability (not withholding) on Form MO-1040, Line 10.
- Ensure the credit is not reduced by credits other than withholding or estimated tax payments, unless the other state allows a Missouri resident credit.
Important Notes
- The credit is based on the actual tax liability from the other state, not just withholding.
- Only income taxed by the other state qualifies for the credit.
- Missouri does not allow a credit for taxes paid to a state that does not impose an income tax on Missouri-source income.
Source:
Form MO-1040 Instructions
Form MO-PTC Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions before filing.