Missouri Department of RevenueWhat's New?
- Form MO-NJD (Small Business Deduction for New Jobs Under Section 143.173, RSMo)
- 1099-G Inquiry
- Request for Change of Address
- 2011 Tax Year Changes
- No Return Required - Military (Online Form)
Small Business Deduction for New Jobs Under Section 143.173, RSMo. - (HB45)
For all taxable years beginning on or after January 1, 2011, and ending on or before December 31, 2014, if a small business creates new jobs, it may qualify to claim a deduction in the taxable year each new employee completes at least 52 weeks of full-time employment. The deduction may be claimed on the Individual Income Tax Return or a Corporation Income Tax Return by the following types of small businesses: sole proprietor, C-Corporation, or LLC treated as a corporation or as a sole proprietor. To claim the deduction on the income tax return, Form MO-NJD must be completed and submitted with the return.
Individual Income Tax Changes
The following changes are all effective January 1, 2011, and will be reflected on the 2011 Missouri Individual Income Tax Returns.
- Public Pension Exemption
- Social Security and Social Security Disability Deduction
- Military Service Member Exemption
- Requirements for Spouses of Military Service Members
- Five new trust funds were added:
- Organ Donor Program Fund (HB151)
- Foster Care and Adoptive Parents Recruitment and Retention Fund (HB431)
- American Red Cross Fund (HB631)
- Developmental Disabilities Waiting List Equity Trust Fund (HB631)
- Puppy Protection Fund (SB356)
Public Pension Exemption
Married couples with Missouri adjusted gross income less than $100,000 and single individuals with Missouri adjusted gross income less than $85,000, may deduct up to 80 percent of their public retirement benefits, to the extent the amounts are included in their federal adjusted gross income. The deductible percentage of their public retirement benefits will increase until 2012. A breakdown of the yearly percentage is as follows:
| Year | Limit |
|---|---|
| 2007 | 20% |
| 2008 | 35% |
| 2009 | 50% |
| 2010 | 65% |
| 2011 | 80% |
| 2012 and forward | 100% |
The total public pension exemption is limited to $34,141 for each spouse.
Married couples with Missouri adjusted gross income greater than $100,000 and single individuals with Missouri adjusted gross income greater than $85,000, may qualify for a partial exemption. See the public pension exemption eligibility chart or complete the public pension calculation located on the MO-A, to determine if you are eligible.
Taxpayers who also qualify for the Social Security or Social Security Disability Deduction, must reduce their public pension exemption by the amount of the Social Security or Social Security Disability Deduction.
Social Security and Social Security Disability Deduction
Married couples with Missouri adjusted gross income less than $100,000 and single individuals with Missouri adjusted gross income less than $85,000, may deduct up to 80 percent of taxable social security and social security disability benefits. The deductible percentage of their social security and social security disability benefits will increase until 2012. A breakdown of the yearly percentage is as follows:
| Year | Limit |
|---|---|
| 2007 | 20% |
| 2008 | 35% |
| 2009 | 50% |
| 2010 | 65% |
| 2011 | 80% |
| 2012 and forward | 100% |
Individuals must be 62 to qualify for a social security deduction.
Married couples with Missouri adjusted gross income greater than $100,000 and single individuals with Missouri adjusted gross income greater than $85,000, may qualify for a partial deduction. See the social security/social security disability deduction eligibility chart or complete the social security/social security disability calculation located on the MO-A, to determine if you are eligible.
Military Service Member Exemption
For the tax year beginning January 1, 2011, 30 percent of a military pension income will be exempt from Missouri state tax. This tax deduction will increase 15 percent annually until January 1, 2016, when all military pension income will be tax free. Pension Exemption may be taken on the Form MO-1040, MO-A, Part 3, Section D.
Requirements for Spouses of Military Service Members
Impacts of the Military Spouse’s Residency Relief Act
- If you are a Missouri resident and the spouse of a military servicemember residing outside of Missouri solely because your spouse is there on military orders, any income you earn is taxable to Missouri.
- If you are a resident of another state and the spouse of a military servicemember residing in Missouri solely because your spouse is here on military orders, any income you earn is not taxable to Missouri.