Corporation Income and Franchise Tax

Important Notice

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 can be claimed by the following types of small businesses:  sole proprietor, C-Corporation, or LLC treated as a corporation; and can be claimed on the Individual Income Tax Return or a Corporation Income Tax Return.  Below are revised or new tax forms:

Additional information can be obtained on the Frequently Asked Questions page.

Individual Income Tax

Due Date

  • The due date for the 2014 Missouri Individual Income Tax Return is April 15, 2015.

Military Service Member Exemption

  • Beginning January 1, 2014, 75 percent of a military pension income will be exempt from Missouri state tax. This tax deduction will increase to 100 percent 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

  • Tax Chart- Taxpayers should use the tax rates in the Tax Chart when computing taxes on their 2014 Missouri return. You can also calculate your Missouri income tax using the Department's Income Tax Calculator.
  • Home energy audit deduction expense modification – The maximum yearly subtraction may not exceed $1,000 for a taxpayer filing a single return or $2,000 for taxpayers filing a combined return.   The Home Energy Audit Expense modification no longer contains a maximum total lifetime subtraction of $2,000.  For more information about Home Energy Audit Deduction click here.
  • The following tax credits have an extended sunset date of December 31, 2019:
    • Public Safety Officer Surviving Spouse Credit
    • Champion for Children Credit (previously CIC)
    • Residential Dwellings Accessibility Credit
    • Pregnancy Resource Center Credit
    • Food Pantry Credit
  • A new Missouri National Guard Foundation Fund is being introduced in 2014. The two digit code and additional information is available in the MO-1040 instruction guide.
  • The After-School Retreat Reading and Assessment Program Fund sunset and terminated effective December 31, 2014.
  • The Missouri refund debit card is no longer an option on returns filed on or after January 1, 2014.

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

  • Standard deduction amounts:
    • Single - $6,200
    • Married filing combined or qualifying widow(er) - $12,400
    • Head of household - $9,100
    • Married filing separate - $6,200
  • Federal Exemption amount - $3,950;
  • Taxpayers 65 or blind – $1,200 ($1,550 if single or head of household);
  • Social security tax withheld maximum amount - $7,049;
  • Railroad Retirement maximum amounts:
    • Tier I - $7,254
    • Tier II - $3,828
  • Federal Tax Deduction:
    • Excess advance premium tax credit (Federal Form 1040, Line 46 and Federal Form 1040A, Line 29) will reduce the federal tax deduction.
    • Net premium tax credit (Federal Form 1040, Line 69 and Federal Form 1040A, Line 45) will reduce the federal tax deduction.
  • Other Federal Tax Deduction:
    • Net premium tax credit (Federal Form 1040, Line 69 and Federal Form 1040A, Line 45) will reduce the federal tax deduction.
  • Itemized Deduction:
    • Social security tax withheld maximum amount - $7,049
  • Worksheet for net state and local income tax, complete if federal adjusted gross income is more than:
    • Single - $254,200
    • Married filing combined or qualifying widow(er) - $305,050
    • Head of household - $279,650
    • Married filing separate - $152,525