Section 143.174, RSMo provides a deduction for military income earned as a member of the active duty component of the Armed Forces of the United States. Below is some helpful information regarding the military deduction:

  • This deduction may be claimed on line 19 of the 2016 Missouri Individual Income Tax Return (Form MO-1040).
  • The military income must be included in the federal adjusted gross income and not have been previously taken as a deduction.
  • When submitting your return, include a copy of your Leave and Earnings Statement and any other official document, such as your Military Orders, which validates how long you were in active duty status and the amount you earned in active duty status. Failure to attach the required documentation may result in the disallowance of the deduction.
  • The Military Orders must indicate that you were ordered to federal active duty status under Title 10 U.S.C. or Title 32 U.S.C 502(f).
  • Military individuals participating in drills, instruction, or other exercises not included under Title 32 U.S.C. 502(f) will not be allowed the military deduction. Two examples of when the military deduction would not be allowed under Section 143.174, RSMo include:
    • individuals participating in drills or training under Title 32 U.S.C. 502(a); or
    • individuals attending schools or small arms competitions under Title 32 U.S.C. 504.
  • All Missouri returns claiming the military deduction will be compared to income data (Form W-2 data) provided by the Defense Finance and Accounting Service (DFAS).