Frequently asked questions:
When is my annual tax return due?
Annual returns are due April 15 each year.
Can I file and pay my taxes online?
Yes. File and pay taxes online.
What is the earnings tax?
The earnings tax (sometimes referred to as “e-tax”) is a one percent tax on an individual’s earned income such as salaries, wages, commissions, tips and other compensation. It generates revenue that pays for a wide variety of basic City services used by all those who live and work in Kansas City, Missouri. In addition to helping fund basic City services such as repairing roads and weekly trash collection, the revenue from the earnings tax also pays for police officers, fire fighters, paramedics and ambulance services. Revenue from the earnings tax also helps fund snow removal, codes inspection, historic preservation and other City needs.
The earnings tax is paid by any business or person who lives or works in Kansas City, Missouri.
Who has to file and/or pay earnings tax?
All Kansas City, Missouri residents are required to pay the earnings tax, even if they work outside of the city. Non-residents are required to pay the earnings tax on income earned within Kansas City, Missouri city limits.
How do I know if I owe?
Your employer should withhold the earnings tax if you work in Kansas City, Missouri. Your W-2 (or your paystubs) will reflect tax paid through payroll deductions. You do not need to file a return if the amount in Box 19 of your W-2 equals 1% of Box 1.
Your employer may be willing to withhold the tax if you are a resident but do not work at a location, or perform services, in Kansas City, Missouri. Please check with your employer for more information.
Companies can contact the Revenue Division at 816-513-1135 to set-up an account for withholding.
If you received a bill for earnings taxes, please call the representative listed or 816-513-1120.
What if my employer did not withhold for me?
You must pay the earnings tax if the tax was not deducted from your paycheck and you live or work in Kansas City, Missouri. Please check your W-2 or paystubs to see if earnings tax was deducted. If you work at a location, or perform services, in Kansas City, Missouri, and your employer did not deduct earnings tax please call 816-513-1120.
What do I need to know before I fill out my return?
W-2s and any supporting documentation must accompany all returns. Non-resident taxpayers are required to obtain their employer’s signature when completing the RD-109NR, along with supporting documentation.
You do NOT have to file a return, if you are fully withheld by your employer. Please check your W-2 or contact your employer.
I am paying my earnings tax after the due date. Do I have to pay penalties or interest?
Late payments are subject to a penalty of 5 percent per month (up to a maximum of 25 percent) plus interest at the rate of 12 percent per year from the due date. These rates apply to the following tax types imposed under the earnings tax: wages, profits and employer withholding of the earnings tax.
I am a resident of Kansas City, Missouri, but work outside of Kansas City, Missouri. Am I subject to the one percent earning tax on the monies I earn outside of Kansas City, Missouri?
Yes, the monies earned by residents are subject to the City’s one percent earnings tax regardless of where they are earned unless exempted by state statute or municipal ordinance.
I work part of a day in Kansas City, Missouri and part outside of Kansas City, Missouri. How do I treat this in calculating my days worked outside of the City?
If any portion of a day is worked within Kansas City, Missouri, that day would not be considered a day worked outside of the City.
Are there any exceptions to the standard work year of 260 days on Form RD-109NR?
There are exceptions, including part-time employees, flex-time employees and partial-year residents. Documentation may be requested to verify the number of days worked if not using the standard 260 days.
Is retirement income subject to the earnings tax?
Income from qualified deferred compensation plans is not subject to the earnings tax. Common examples of qualified plans include 401(k), 403(b), 501(c)(3) or 457(b).
Social security payments are not subject to the earnings tax.
Is disability income subject to the earnings tax?
Payments related to a permanent disability such as a disability pension or retirement are not subject to the earnings tax.
Payments related to a temporary disability (either short-term or long-term) are subject to the earnings tax if the premiums for the benefit were paid entirely by the employer or by the employee before tax. If the premiums for the plan were paid entirely by the employee after tax, the disability payments are not subject to tax. If the premiums were paid partly by the employee with after tax monies and partly by the employer the payments are taxable based on the ratio of the amount paid by the employee to the total premium amount paid. See page 22 of the Earnings and Profits Tax Regulations for more information.
Is unemployment compensation subject to the earnings tax?
Unemployment benefit payments are not subject to the earnings tax.
I am an active duty member of the military. Do I owe earnings taxes?
For tax years beginning January 1, 2016 and earlier, your military service pay is subject to the earnings tax if you were a resident of Kansas City, Mo. and claimed Missouri as your Home of Record.
For tax years beginning January 1, 2017 and after, your military service pay is exempt from the earnings tax regardless of your resident status or Home of Record.
Combat zone and hostile fire/ imminent danger pay are not subject to the earnings tax regardless of tax year, resident status or Home of Record.
What if I receive a severance package? How is it taxed by the City?
Severance pay is a form of compensation and is considered earnings subject to the earnings tax. If a nonresident receives severance pay from Kansas City employment and requests a refund for days worked outside the City, the City will generally use the average percentage of days a taxpayer worked outside the City for the previous five years to determine the refundable amount.
How do I get a refund?
In most cases, tax refunds are issued when taxpayers overpay the amount of taxes due. If you believe you have overpaid your taxes, you may file for a refund through Quick Tax or by mail. Be sure to include all income information and any supporting documentation.
What’s the status of my refund?
To check the status of your refund, go to Quick Tax and click on “Check Refund Status.” You may also call Taxpayer Services at 816-513-1120.
How do I change my address?
Please complete a taxpayer information form and submit via email or by mail to the address on the top of the form. Address change requests may also be submitted online using Quick Tax.
What if I still have questions?
Send an email with your tax questions and requests. We will respond within 2-3 business days.
Visit our office at:
City Hall, 2nd floor
414 E. 12th St.
Kansas City, MO 64106
Office hours: Monday through Friday (except holidays), 8:00 a.m. to 5:00 p.m.