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2012 Missouri Individual Income Tax and PTC Booklets are Available

The Missouri Department of Revenue’s 2012 individual income tax booklets were mailed beginning the last week of December. The Property Tax Credit (PTC) booklets were also mailed at the same time.

But there is no need to wait on the mail. Everyone can access all forms and booklets, including the PTC booklets, right now from our website. To download and print these forms, click here.

Using online forms is easy and free.

Small Business Deduction for New Jobs Under Section 143.173, RSMo. - (HB1661)

House Bill 1661 was passed by the general assembly in the 2012 regular session, and it was signed into law by Governor Nixon on June 27, 2012. House Bill 1661 extends the New Jobs Deduction, established last year by House Bill 45, to all businesses that meet the statutory criteria regardless of how the business entity is structured. C corporations, S corporations, LLCs, LLPs, partnerships and sole proprietorships are now all eligible for the New Jobs Deduction if they meet all other qualifying criteria. Generally, for taxable years 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. The application form for the credit, Form MO-NJD, must be completed and submitted with the return. Click HERE for frequently asked questions about this deduction.

Individual Income Tax Changes

The following changes are all effective January 1, 2012, and will be reflected on the 2012 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 $35,234 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, 2012, 45 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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Farmers and Fisherman Deadline to File Extended

The Missouri Department of Revenue is providing relief from possible penalties to farmers and fishermen who have not filed and paid their 2012 Missouri Individual Income Tax Return by March 1, 2013. Farmers and fishermen who choose not to make quarterly estimated income tax payments must normally file their returns and pay the full amount of tax due by March 1. If the deadline is missed, they could be subject to penalties. However, the late enactment of the American Taxpayer Relief Act by the U.S. Congress shortened the time period the Internal Revenue Service could accept tax returns. As a result, the IRS will consider the tax returns from farmers and fishermen to be timely until April 15, 2013. The Missouri Department of Revenue has also decided not to impose any underpayment penalties for missing the March 1 deadline.

A taxpayer qualifies as a farmer or fishermen for Tax Year 2012 if at least two-thirds of the filer’s total gross income was from farming or fishing in either 2011 or 2012. Information about filing for farmers and fishermen can be found at the IRS’ website at http://www.irs.gov/uac/Newsroom/IRS-Provides-Penalty-Relief-to-Farmers-and-Fishermen

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