We receive a 1099 MISC from our church headquarters in Missouri. When I became a missionary in 2004, we began receiving monthly support from our headquarters in Missouri. We continued to reside in Texas (which has no state income tax) for some time, ministering in churches there. We relocated to MO in 2006, and began paying state taxes. I just received a letter from MO Dept of Revenue that we may owe state taxes for 2005. Do we have to pay MO state taxes for the finances we received from our headquarters located there - though we were not residents?

If you were not present in MO in 2005, you do not owe any MO state tax. Reply that you did not work in MO in 2005. Your U.S. Tax Return: Working or Living in Two or More states