If your employee is a resident of a state with whom Illinois does not have a reciprocal agreement (i.e., Missouri), you must withhold Illinois income tax on all income that is paid in Illinois. You may be required to withhold tax for another state in which the employee works or resides.

Pennsylvania. South Dakota. Tennessee. Texas. Washington. West Virginia. Wisconsin. Wyoming.

You will file as a resident for Kansas and a non-resident for Missouri. Kansas will give you a credit for the tax you pay in Missouri, but only up to the amount of Kansas tax on the same income. ... And if Kansas has a higher tax rate than Missouri, you will have a balance you still owe to Kansas.

If your a Missouri resident/working in Illinois you do not need to withhold Missouri taxes. Yes you will owe Missouri taxes as a resident but do your Illinois state return first and Missouri gives you a credit on all income taxes paid to Illinois so you won't face any penalties or really owe much or any at that point.

Generally you are considered a resident if your domicile is that state, or (if your domicile is another state) you maintained a permanent place of abode in that state and spent more than 184 days there during the year. Most state tax authorities have a page explaining what exactly constitutes a resident in their state.

To avoid having residents pay taxes in two states, the two neighboring states will form a reciprocity agreement. These agreements concern income taxes for those who work in one state but live in another. Under reciprocity, residents only pay income taxes to their home state, regardless of where they work.

Missouri residency can generally be obtained by presence within Missouri for the primary purpose of full-time employment or retirement or for a minimum of twelve consecutive months along with proof of intent to make Missouri a permanent home for an indefinite period of time.

For tax year beginning January 1, 2021, it is $2,375 per exemption. If someone else can claim you as a dependent and your Illinois base income is $2,375 or less, your exemption allowance is $2,375. If income is greater than $2,375, your exemption allowance is 0.

A Resident of Missouri is an individual that is domiciled in Missouri. If an individual is not domiciled in Missouri but has permanent living arrangements in Missouri and spends more than 183 days in Missouri, they are considered Missouri residents.