As a Texas resident, you may have found yourself in a unique situation - owning a house in Missouri but not earning any income there. This may have led you to wonder about your state tax obligations in Missouri and whether or not you should consider changing your residency with your company to that state. To get a clear understanding of your tax liabilities, it's best to consult with a tax advisor. However, here are some key points to keep in mind when it comes to Missouri state taxes for non-residents.
Residency and State Taxes
First and foremost, it's important to understand the concept of residency when it comes to state taxes. Generally, your state of residency is the state in which you live and work for the majority of the year. However, residency can also be established through other factors such as owning a house in a state or having a business located there.
In your case, since you are a Texas resident and only live in Missouri for less than 6 months out of the year, it is likely that you are considered a non-resident for tax purposes in Missouri. This means that you are not subject to Missouri state taxes on your income earned in Texas. However, owning a house in Missouri may complicate things.
Owning a House in Missouri
As a non-resident of Missouri, you are not required to pay state taxes on any income earned outside of the state. This includes income earned in Texas. However, since you own a house in Missouri, there may be some potential tax implications to consider.
Depending on the value of your house, you may be subject to property taxes in Missouri. Property taxes are based on the assessed value of your property and are used to fund local services such as schools and infrastructure. It's important to note that property taxes are separate from state income taxes and are not affected by your residency status.
In addition, if you decide to change your residency to Missouri with your company, you may also be subject to state income taxes on any income earned within the state. This is because Missouri has a "source-based" tax system, which means that income is taxed based on where it is earned, rather than where the earner resides.
Tax Credits and Deductions
While owning a house in Missouri may potentially subject you to property taxes and changing your residency may result in state income taxes, there are also some potential tax benefits to consider. As a non-resident, you may be eligible for tax credits or deductions in Missouri. These can vary depending on your specific situation, but it's worth discussing with a tax advisor.
For example, Missouri offers a "non-resident credit" for individuals who pay income taxes to another state. This credit is meant to prevent double taxation and can be claimed on your Missouri state tax return. Additionally, if you are a non-resident who earns income from Missouri sources, you may be eligible for certain deductions that can reduce your taxable income.
Consult a Tax Advisor
As you can see, there are many factors to consider when it comes to Missouri state taxes for non-residents. It's important to consult with a tax advisor to get a clear understanding of your specific situation and any potential tax implications. A tax advisor can also help you navigate the complex tax laws and ensure that you are in compliance with all state tax regulations.
In conclusion, as a Texas resident who owns a house in Missouri but does not earn income there, you may not be subject to Missouri state taxes. However, depending on your specific situation, there may be some tax implications to consider. It's best to consult with a tax advisor to get a clear understanding of your tax obligations and any potential benefits you may be eligible for.