I had a consulting job this year with a company that is based in Missouri. I live in Virginia. The consulting firm deducted state taxes for both states. Do I need to pay Missouri taxes since I have never lived in the state? Also the consulting job required only some travel to MO, much of it was working in VA.

ANSWER

Expert Thomas Graham iii's Answer:

You do need to pay state income taxes for both Virginia and Missouri.  Basically at the end of the year you will file a VA Resident Tax Return and a MO NonResident Tax Return.  Normally the state of your residence, Virginia, will give you a tax credit for income taxes paid to another state, Missouri.  This tax credit will normally compensate for the amount of taxes that you paid to the nonresident state.  This in turn ends up sort of evening things out so you aren't truly paying income taxes to both states in the end.

Thomas Graham iii, CPA, CFE

Oklahoma

7 yrs experience

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