Individual Income Tax Year Changes

The following changes are effective for the tax year beginning January 1, 2019, and will be reflected on the 2019 Missouri Individual Income Tax Returns.

Due Date

Mirroring the federal guidance issued by the Internal Revenue Service, the filing and income tax payment deadline for individual and corporation income tax returns with an original due date of April 15, 2020, is extended until July 15, 2020, in response to the COVID-19 outbreak. This filing and payment relief applies to all individual income tax returns, income tax returns filed by C Corporations, and income tax returns filed by trusts or estates. The filing deadline for partnership returns that were originally due on April 15, 2020 is also extended to July 15, 2020.The Department will automatically provide this relief, so filers do not need to take any additional steps to qualify.

For additional information regarding COVID-19 extensions, refer to dor.mo.gov/open.php and review the Department's news releases.

 

Tax Rate Changes-Indexed for Inflation

    If the Missouri taxable income is...
    The tax is...
    $0 to $104 $0
    At least $105 but not over $1,053 1.5% of the Missouri taxable income
    Over $1,053 but not over $2,106 $16 plus 2.0% of excess over $1,053
    Over $2,106 but not over $3,159 $37 plus 2.5% of excess over $2,106
    Over $3,159 but not over $4,212 $63 plus 3.0% of excess over $3,159
    Over $4,212 but not over $5,265 $95 plus 3.5% of excess over $4,212
    Over $5,265 but not over $6,318 $132 plus 4.0% of excess over $5,265
    Over $6,318 but not over $7,371 $174 plus 4.5% of excess over $6,318
    Over $7,371 but not over $8,424 $221 plus 5.0% of excess over $7,371
    Over $8,424 $274 plus 5.4% of excess over $8,424

     

Missouri Standard Deduction

Missouri’s standard deduction is equal to the federal standard deduction. Below are the standard deduction amounts that changed for the 2019 tax year:

  • Single - $12,200
  • Married Filing Combined - $24,400
  • Married Filing Separate - $12,200
  • Head of Household - $18,350
  • Qualified Widow(er) - $24,400

Federal Tax Deduction

Starting with the 2019 tax year, the federal tax deduction for individuals is multiplied by a percentage, based on the Missouri adjusted gross income.

    If the Missouri adjusted gross income is:
    The federal tax deduction is multiplied by:
    $25,000 or less

    35%

    $25,001 to $50,000

    25%

    $50,001 to $100,000

    15%

    $100,001 to $125,000

    5%
    $125,001 or more 0%

The overall limit to the deduction remains at $5,000 ($10,000 for married filing combined returns).

First-Time Home Buyer Deduction

Starting with the 2019 tax year, a deduction for 50 percent of a contribution to a First-Time Home Buyer Bank account is allowed.  The amount of contribution deduction to the first-time home buyer account(s) cannot exceed $800 ($1,600 for married filing combined returns).  The bank account must be established solely for the purpose of paying the expenses related to a beneficiary’s purchase of a first home.  Interest accruing on the amount in the bank account is also exempt from Missouri income tax.

New Trust Funds

Beginning with the 2019 tax year, taxpayers will have the option of contributing a minimum of $1 ($2 on a married filing combined return) to these trust funds:

  • Kansas City Regional Law Enforcement Memorial Foundation Fund
  • Soldiers Memorial Military Museum in St. Louis Fund

New Tax Credits

  • Diaper Bank Credit – Taxpayers are allowed an income tax credit for 50 percent of contributions to an entity established for collecting or purchasing disposable diapers or other hygiene products.  Certification of this credit is performed by the Department of Social Services.
  • Unmet Health, Hunger, and Hygiene Needs of Children in School Tax Credit – Taxpayers are allowed an income tax credit for 50 percent of contributions to an organization providing funding for unmet health and hygiene needs of children in school.  Certification of this credit is performed by the Department of Social Services.

Revision to Current Tax Credits

  • Food Pantry Tax Credit – Taxpayers can now include donations of food or cash to local food pantries, local soup kitchens, or local homeless shelters, unless the food is donated after the food’s expiration date. A taxpayer will not be allowed to claim more than one credit under this section for a single donation.
  • Champion for Children Tax Credit – The cap on the cumulative amount of the credit that can be redeemed was increased from $1 million to $1.5 million for fiscal years beginning on or after July 1, 2019. The credit cannot be assigned, transferred, or sold.
  • Maternity Home Tax Credit – “Maternity home” was redefined (see RSMo. 135.600). The option to carry the tax credit forward was reduced from four years to one year. The cap on the cumulative amount of credit that can be claimed was increased to $3.5 million beginning on or after July 1, 2019. If the amount of credits redeemed in the fiscal year is less than the cumulative amount authorized, the difference shall be carried forward to the subsequent fiscal year and added to that year’s cumulative amount. The credit cannot be assigned, transferred, or sold.
  • Pregnancy Resource Center Tax Credit – The option to carry the tax credit forward was reduced from four years to one year. The cap on the cumulative amount of credit that can be claimed was increased to $3.5 million beginning on or after July 1, 2019. If the amount of credits redeemed in the fiscal year is less than the cumulative amount authorized, the difference shall be carried forward to the subsequent fiscal year and added to that year’s cumulative amount. The credit cannot be assigned, transferred, or sold.