2017 Individual Income Tax Year Changes

The following changes are effective for the tax year beginning January 1, 2017, and will be reflected on the 2017 Missouri Individual Income Tax Returns.

Due Date

The due date for the 2017 Missouri Individual Income Tax Return is April 17, 2018.

Tax Rate Changes-Indexed for Inflation

Based on previous inflation information, the income tax brackets for the 2017 tax year on each income increments have been increased.

    If the Missouri taxable income is
    The tax is

     $0 to $100

    		  $0

     At least $101 but not over $1,008

     1-1/2% of the Missouri taxable income

     Over $1,008 but not over $2,016

     $15 plus 2% of excess over $1,008

     Over $2,016 but not over $3,024

     $35 plus 2-1/2% of excess over $2,016

     Over $3,024 but not over $4,032

     $60 plus 3% of excess over $3,024

     Over $4,032 but not over $5,040

     $90 plus 3-1/2% of excess over $4,032

     Over $5,040 but not over $6,048

     $125 plus 4% of excess over $5,040

     Over $6,048 but not over $7,056

     $165 plus 4-1/2 of excess over $6,048

     Over $7,056 but not over $8,064

     $210 plus 5% of excess over $7,056

     Over $8,064 but not over $9,072

     $260 plus 5-1/2 of excess over $8,064
     Over $9,072

     

    		  $315 plus 6% of excess over $9,072

 

Additional Personal Exemption (SB 509-2014 session)  

Beginning with the 2017 tax year, an additional personal exemption of $500 can be claimed if the individual’s Missouri adjusted gross income is less than $20,000.  The additional exemption of $500 can be claimed by each spouse if his or her income is below $20,000 and qualifies for a personal exemption for federal purposes. 

Transportation Facilities Deductions (SB 861-2016 session)

Beginning with the 2017 tax year, three new deductions related to transportation facilities can be claimed.  These deductions are: Water Port Facility or Airport Cargo, (Section 143.2105, RSMo), International Trade Facility Cargo (Section 143.2110, RSMo), and Capital Investment in International Trade Facilities (Section 143.2115, RSMo). 

Employee Stock Ownership Plan (ESOP) Subtraction (HB 2030-2016 session)

Beginning with the 2017 tax year, taxpayers are allowed a deduction equal to 50 percent of the net capital gain from the sale or exchange of a Missouri corporation to a “qualified Missouri employee stock ownership plan”. The subtraction is allowed if, after the transaction, the employee stock ownership plan owns at least 30 percent of all outstanding securities issued by the Missouri corporation.

Tax Credit changes (SB 665 – 2016 session)

Beginning with the 2017 tax year, taxpayers can claim the Meat Processing Facility Investment Tax Credit. This credit is equal to 25% of the amount the taxpayer paid in the tax year for meat processing modernization or expansion related to the taxpayer’s meat processing facility.  The credit is limited to the taxpayer’s tax liability, excess may be carried forward for four-years, ending in 2021. Limit of $75,000 per individual taxpayer. 

Federal income tax changes affecting the Missouri return

Missouri individual income tax follows certain amounts set by the Internal Revenue Service. Below are the amounts that changed from tax year 2016:

  • Standard deduction for the following statuses increased to:
    • Single - $6,350
    • Married filing combined - $12,700
    • Married filing separate - $6,350
    • Head of household - $9,350
    • Qualified widow(er) - $12,700
  • Itemized Deduction (Worksheet for net state and local income tax, complete if federal adjusted gross income is more than):
    • Single - $261,500
    • Married filing combined or qualifying widow(er) - $313,800
    • Head of household - $287,650
    • Married filing separate - $156,900