What's New?

Individual Income Tax Changes

The following changes are all effective January 1, 2013, and will be reflected on the 2013 Missouri Individual Income Tax Returns.

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 100 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 $35,939 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.

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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 100 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.

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Military Service Member Exemption

For the tax year beginning January 1, 2013, 60 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.

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Requirements for Spouses of Military Service Members

Impacts of the Military Spouse’s Residency Relief Act

Click here for more information regarding the Military Spouse’s Residency Relief Act and other Military related issues.

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