Pension Tax Year 2024 FAQs

Removing the Missouri adjusted gross income limitation from the calculation of the public pension exemption means less public pension benefits will be subject to tax. Eligible taxpayers can subtract their public retirement benefits up to the maximum social security benefit amount, to the extent included in their federal adjusted gross income. Removal of the Missouri adjusted gross income limitation does not completely exempt all public pension benefits from tax. If a taxpayer also takes the social security/social security disability deduction, then the public pension exemption is reduced by the amount of the social security/social security disability deduction.

Removing the Missouri adjusted gross income limitation from the social security/social security disability deduction will result in 100% of all social security benefits no longer being taxed in Missouri for individuals who are 62 years of age or older, and 100% of social security disability benefits no longer being taxed in Missouri. This only applies to the extent these benefits are included in federal adjusted gross income under Internal Revenue Code § 86.

The change will be effective for all tax years beginning on or after January 1, 2024. The 2024 tax year forms will reflect the change to the calculation. Click here for a draft of the 2024 Form MO-A, page 3.

• Taxpayers who are receiving social security benefits and are 62 years of age or older, if any of these benefits are included in federal adjusted gross income under Internal Revenue Code § 86.
• Taxpayers receiving social security disability benefits, regardless of age, if any of these benefits are included in federal adjusted gross income under Internal Revenue Code § 86.
• Taxpayers who are receiving public retirement benefits, such as a pension from a federal, state, or local government, if any of these benefits are included in federal adjusted gross income.

No, this change only removes the Missouri adjusted gross income limitation used in calculating the public pension exemption and the social security/social security disability deduction. This will not affect the private pension calculation on Form MO-A, Part 3-Section B.

No, you will only be able to subtract up to the maximum social security benefit amount for the respective tax year. Also, the public pension exemption will be reduced by the amount of the social security/social security disability deduction.