What's New?

• Request for Change of Address
• 2009 Tax Year Changes
• No Return Required - Military (Online Form)

Individual Income Tax Changes

The following changes are all effective January 1, 2009, and will be reflected on the 2009 Missouri income tax returns.

• New Public Pension Exemption
• New Social Security and Social Security Disability Deduction
• New Build America Bond and Recovery Zone Bond Modification
• New Missouri Public-Private Transportation Act
• New Home Energy Audit Expense Modification
• New Miscellaneous Tax Credits
• New Requirements for Spouses of Military Service Members

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New 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 the greater of $6,000 or 50 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 $33,703 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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New 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 50% 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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New Modifications for Interest Earned on Build America Bonds and Recovery Zone Bonds

Any interest earned from Build America Bonds or Recovery Zone Bonds may be included as a subtraction from federal adjusted gross income on Form MO-A, Part 1, Line 9.   The interest income must have been included in your federal adjusted gross income to be eligible for the subtraction.

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New Modification for income received from the Missouri Public-Private Transportation Act

Any income received in connection with the Missouri Public-Private Transportation Act may be included as a subtraction from federal adjusted gross income on Form MO-A, Part 1, Line 9.

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New Modification for Home Energy Audit Expenses

Any expenses you incurred for a home energy audit or the implementation of any energy efficiency recommendations made by a home energy audit, may be included as a subtraction from federal adjusted gross income on Form MO-A, Part 1, Line 13. The maximum yearly subtraction is $1,000 and the total subtractions claimed in all years may not exceed $2,000 cumulatively. You must complete Form MO-HEA and attach it with the applicable receipts to your tax return.

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New Miscellaneous Tax Credits

Information related to the Alternative Fuel Infrastructure Credit and the Qualified Beef Credit may be found at the following address: http://dor.mo.gov/tax/taxcredit/index.htm

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New 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.

For more information regarding the Military Spouse’s Residency Relief Act and other Military related issues, visit:http://dor.mo.gov/tax/personal/military/index.htm

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