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Yes. You must complete a Missouri return (Form MO-1040), along with Form MO-CR (Missouri resident credit), in order to receive a credit for tax paid to the other state.
Whether you receive all of your 1099 forms or not, taxpayers must report the income when they file their taxes. Taxpayers do not need to send their 1099 forms to the IRS when filing but should report any errors on their 1099s.
Reverse credit states: both states tax the income, but the nonresident state offers the credit.
How tax credits work. A tax credit is a dollar-for-dollar reduction of the income tax you owe. For example, if you owe $1,000 in federal taxes but are eligible for a $1,000 tax credit, your net liability drops to zero.
The following states have state tax reciprocity agreements with at least one other state: Arizona. Arizona has state tax reciprocity agreements with California, Indiana, Oregon, and Virginia. Illinois. Indiana. Iowa. Kentucky. Maryland. Michigan. Minnesota.
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California Other State Tax Credit (Nonresidents) We last updated California 540-NR Schedule S in February 2022 from the California Franchise Tax Board. This form is for income earned in tax year 2021, with tax returns due in April 2022.
With California a reverse-credit state, Indiana residents included in a California composite return pay the highest marginal tax rate on their California source income while receiving no credit for that tax on their Indiana income tax return, effectively paying a state income tax rate of 16.6% on their California
Who May Use the IA 130? Only Iowa residents or part-year residents with an income tax liability outside of Iowa, local jurisdiction outside of Iowa, or foreign country may reduce their Iowa tax liability by claiming an Iowa Out-of-State Tax Credit using the IA 130 Out-of-State Tax Credit (41-130).
How About Income Earned in States Having an Income Tax? As a California resident, you will be obligated to file a non-resident tax return in the state where the income was earned and pay tax on the income earned in that state.
Usually, if you are required to file taxes in multiple states, you might be eligible for a credit for taxes paid to another state. Various state laws provide these credits so that you dont pay taxes to multiple states on the same income.

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