What's New?

2024 Legislative Session

• View important taxation changes from the 2024 legislative session.

2024 Individual Income Tax Year Changes

The following changes are effective for the tax year beginning January 1, 2024, and will be reflected on the 2024 Missouri Individual Income Tax Returns.

Due Date

• The due date for the 2024 Missouri Individual Income Tax Return is April 15, 2025.
• The extension due date for the 2024 Missouri Individual Income Tax Return is October 15, 2025.
• The Ethanol Retailer and Distributor Tax Credit, Biodiesel Retailer and Distributor Tax Credit, Food Pantry Tax Credit, and Champion for Children Tax Credit are all due April 15, 2025.

Tax Rate Changes – Indexed for Inflation

If the Missouri taxable income is...	The tax is...
$0 to $1,273	$0
Over $1,273 but not over $2,546	2.00% of excess over $1,273
Over $2,546 but not over $3,819	$25 plus 2.50% of excess over $2,546
Over $3,819 but not over $5,092	$57 plus 3.00% of excess over $3,819
Over $5,092 but not over $6,365	$95 plus 3.50% of excess over $5,092
Over $6,365 but not over $7,638	$140 plus 4.00% of excess over $6,365
Over $7,638 but not over $8,911	$191 plus 4.50% of excess over $7,638
Over $8,911	$248 plus 4.80% of excess over $8,911

Standard and Additional Standard Deduction for Individual Income Tax (with 2024 updates)

*The additional standard deduction for taxpayers over the age of 65 or blind are as follows:

• $1,550 for taxpayers claiming a filing status of married filing combined, married filing separate and qualifying widow(er) or
• $1,950 for taxpayers claiming a filing status of single and head of household.

New Income Tax Subtractions

• Broadband Grants Income Tax Deduction (Section 143.121)
  • This provision allows customers to receive a subtraction from their Missouri Adjusted Gross Income for 100% of the grant money they received from a federal, state, or local grant program, for the purpose of providing or expanding broadband internet to the areas of the state that are deemed to be lacking. Effective on August 28, 2024, this subtraction may retroactively be claimed for grant money disbursed during tax years beginning on or after January 1, 2022.

New Income Tax Deductions

• Active Duty and Inactive Duty Military Deduction (section 143.174 & 143.175) after 143.172
  • This provision added language clarifying that sign on bonuses received by members of the Armed Forces are included in the definition of “compensation” for determining the active duty Military income deduction.
  • The provision expands the Inactive Duty Military income deduction to include signing bonuses received by the members of the National Guard or reserve components of the United State Armed Forces.

Tax Credits

• Refundable Adoption Tax Credit (RAC) (Sections 135.325 – 135.339)
  • Legislative changes removed the fiscal year limitation on the cumulative amount of credits that can be claimed by all taxpayers in a single fiscal year. As a result, this credit is no longer subject to apportionment effective July 1, 2024. It additionally allows the $10,000 per taxpayer cap to be adjusted annually for inflation starting January 1, 2024. Credits issued for tax years beginning on or after January 1, 2024 will be refundable. If you are claiming a credit that was issued for a tax year beginning on or before January 1, 2024, the credit will be claimed as an Adoption Tax Credit (ATC) and it will not be refundable.
• Adoption Tax Credit (ATC) (Sections 135.325 – 135.339)
  • Legislative changes removed the fiscal year limitation on the cumulative amount of credits that can be claimed by all taxpayers in a single fiscal year. As a result, this credit is no longer subject to apportionment effective July 1, 2024. If you are claiming an adoption tax credit that was issued for a tax year that began on or before January 1, 2024, you will utilize credit code ATC, which remains non-refundable.
• Show MO Act Tax Credit Program (FPC) (Section 135.750)
  • This provision restarts and modifies the previously sunset Film Production tax credit program.
  • It is renamed the Show MO Act. Starting January 1, 2023
  • A taxpayer who produces qualified motion media production projects or series production projects may be eligible to receive a tax credit based on actual expenses toward production.
  • The percentage amount of the credit is awarded based on the number of delineated items achieved.
  • The cap is set at $8 million annually for the motion medial production projects and another $8 million annually for the series production projects.
• Entertainment Industry Jobs Tax Credit Program (Section 135.753)
  • This provision creates a new tax credit program called the Entertainment Industry Jobs Act to be administered by the Missouri Department of Economic Development. Starting January 1, 2024, any taxpayer may qualify for a tax credit for rehearsal expenses and tour expenses incurred by the taxpayer if they meet the minimum expenditure dollar amounts.
• Intern & Apprentice Recruitment Tax Credit Program (Section 135.457)
  • This provision creates a new tax credit program starting January 1, 2024, to be administered by the Missouri Department of Economic Development. The credit allows taxpayer’s who hire qualified interns and apprentices to receive a tax credit of $1,500 for each intern or apprentice hired. This credit has specific qualifications for the interns and apprentices as well as requirements for the taxpayer. These credits are not refundable and cannot be carried forward or sold.
• Ethanol Retailer and Distributor Tax Credit Program (Section 135.772)
  • This provision attempts to clarify that ethanol retailers with a tax year that does not begin on or after January 1, 2023 could still qualify for the tax credit for the qualifying ethanol fuel they sell after January 1, 2023.
• Biodiesel Retailer’s Tax Credit Changes (Section 135.775)
  • Both bills attempt to clarify that biodiesel retailers with a tax year that does not begin on or after January 1, 2023 could still qualify for the tax credit for the qualifying biodiesel fuel they sell after January 1, 2023. SB 138 removes the provision that allows any remaining amount of the retailer’s credit to be shared with the producer’s credit.
• Biodiesel Producer’s Tax Credit Program (Section 135.778)
  • Both bills attempt to clarify that biodiesel producers with a tax year that does not begin on or after January 1, 2023 could still qualify for the tax credit for the qualifying biodiesel fuel produced after January 1, 2023.
  • Additionally, both proposals increase the annual cap to $5.5 million and removes the language requiring apportionment of the credit.
  • SB 138 also removes the provision that any remaining credits not claimed by the producers could be transferred to the biodiesel retailer’s credit for distribution

Other

• Missouri Working Family Credit (Section 143.177)
• For the 2024 tax year, customers can now claim a Missouri Working Family Credit for 20% of the federal earned income credit (EIC).
• Salt Parity Act
• For the 2024 tax year, customers can now claim a Missouri Working Family Credit for 20% of the federal earned income credit (EIC).
• Public Pension Exemption and Social Security/Social Security Disability Deduction
  • SB 190 was passed in 2023 with the changes going into effect for tax years beginning on or after January 1, 2024.The legislation removed the income limitations based on filing status when calculating the public pension exemption and the social security/social security disability deduction. The public pension exemption is still limited by the maximum social security benefit for that year. There are FAQs on the website at https://dor.mo.gov/faq/taxation/individual/pension-tax-year-2024.html