Missour non-resident

[Bonnie]

Anyone out there from Missouri that can give me some help on a non-resident return. I have a taxpayer resident of Kentucky who goes to Missouri and works at a summer camp there. He has a W-2 for 1200 of income while working at this camp in Missouri with tax withheld. Trying to do a non-resident return for him and it is using total income from the federal on the Missouri return. Seems a little strange to me as most states I've seen use only the amount of income earned in their state as the starting place. Is this the way Misssouri always does? Just want to make sure I am doing this correctly as I don't remember ever doing Missouri before.
Thanks
Bonnie

[Larmil]

Anyone out there from Missouri that can give me some help on a non-resident return. I have a taxpayer resident of Kentucky who goes to Missouri and works at a summer camp there. He has a W-2 for 1200 of income while working at this camp in Missouri with tax withheld. Trying to do a non-resident return for him and it is using total income from the federal on the Missouri return. Seems a little strange to me as most states I've seen use only the amount of income earned in their state as the starting place. Is this the way Misssouri always does? Just want to make sure I am doing this correctly as I don't remember ever doing Missouri before.
Thanks
Bonnie

In Missouri you figure the tax on the entire income. Then you figure the MO portion of the income on the NRI. That percentage of the total tax is what MO gets.

[Bonnie]

Wow that is very different, first state I've seen done this way. Thanks

[Gary2]

Wow that is very different, first state I've seen done this way. Thanks

Any state with a graduated income tax will want to pick the tax bracket based on the taxpayer's total income, and then apply that bracket to the income with a source in their state. The "pretend you're a full-year resident, compute the tax, and then take a percentage based on your percentage of income from us" is a fairly common approach.

The TaxBook All States book has a good overview of the various approaches at the beginning of the book.