2011 Tax Year Changes

Important Notice

Effective August 28, 2011, for all taxable years beginning on or after January 1, 2011, the annual franchise tax liability shall not exceed the amount of tax for the taxable year ending on or before December 31, 2010, unless the corporation was not in existence or not doing business in Missouri. This applies to both corporation franchise tax and bank franchise tax. Below are revised tax forms:

• MO-FT
• INT-2-1
• MO-1120 Instructions
• MO-1120S Instructions

Individual Income Tax

Due Date

• The due date for the 2011 Missouri Individual Income Tax Return is April 17, 2012.

Military Service Member Exemption

• 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.

Form Changes

• Form MO-L, Additional Standard Deduction Amount was removed
• 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 is equal to $10,000 for each new job created or $20,000 for each new job created by a small business that paid at least 50 percent of all employees’ health insurance premiums.
• Five new funds were added: the Organ Donor Program Fund, Foster Care and Adoptive Parents Recruitment and Retention Fund, American Red Cross Trust Fund, Developmental Disabilities Waiting List Equity Trust Fund, and the Puppy Protection Trust Fund.

Federal income tax changes affecting the Missouri income tax return consist of the following:

• Federal Schedule L, Additional Standard Deduction Amount was removed;
• Making Work Pay Credit has expired;
• Standard deduction amounts:
• Single - $5,800
• Married filing combined or qualifying widow(er) - $11,600
• Head of household - $8,500
• Married filing separate - $5,800
• Federal Exemption amount $3,700;
• Taxpayers 65 or blind – $1,150 ($1,450 if single or head of household);
• FICA amount - $4,486;
• Railroad retirement amounts:
• Tier I - $4,486
• Tier II - $3,089