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 Misouri Individual Income Tax Returns.

NOTE: Changes are subject to modifications pending special session.

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 Adoption 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 4.95% of excess over $8,911

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

New Income Tax Subtractions

• Federal Broadband Grants’ Income Tax Deduction (Section 143.121)
  • This provision allows taxpayer’s to receive a subtraction from their Missouri Adjusted Gross Income of 100% of the federal grant money they receive, for the purpose of providing or expanding broadband internet to the areas of the state that are deemed to be lacking. Effective August 28, 2024, retroactively applied this subtraction to tax year beginning on or after January 1, 2022, and clarified that the grant money received can be disbursed form federal, state or local grant programs.

New Income Tax Deductions

• Active Duty and Inactive Duty Military Deduction (section 143.174 & 143.175
  • 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

• Adoption Tax Credit (ATC) (Sections 135.327, 135.331, 135.333)
  • This provision removes the cap off of the Adoption Tax Credit program starting July 1, 2024. It additionally will allows the $10,000 per taxpayer cap to be adjusted annually for inflation starting January 1, 2024. This provision will allow the credit to be refundable starting January 1, 2024
• 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
  • 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.
  • The tax credit is awarded for qualifying expenses equal to 30% of a taxpayer’s base investment in Missouri.
  • The tax credit is capped at $8 million annually for these projects.
• Intern & Apprentice Recruitment Tax Credit Program (Section 135.457)
  • This provision creates a new tax credit program starting January 1, 2024 which 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.
  • The annual cap on the program is $1 million.
• 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)
• The Missouri Working Family Credit will begin with the 2023 tax year, able to claim in tax year 2024. A taxpayer can receive a credit of 20 percent of their federal earned income credit. The credit cannot be refunded or carried forward, but will reduce any tax liability after all credits have been applied.
• To qualify for the credit, a taxpayer must be a full time Missouri resident with a filing status of Single, Head of Household, Qualifying Widow(er), or Married Filing Combined.
• Qualifying children must have valid social security numbers
• Salt Parity Act
• Allows an opt-out option for members of an affected business entity who do not want to participate.
• An “opt-out” check box will be added to the 2024 MO-PTE form
• The 2024 MO-PTE instructions will be updated with guidance such as:
• The MO-PTE return cannot include any items of income or deductions belonging to members who have opted out.
• Members who have opted out must agree to file a Missouri income tax return to report their potion of income.
• Changes the calculation for the federal qualified business income deduction (current line 4 of the MO-PTE return)
• The PTE will now claim the Missouri business income deduction (Section 143.022 RSMo.)
• A schedule will be created to calculate the Missouri business income tax deduction.
• Clarifies that additions to tax or interest paid by the business does not count as “tax paid” when calculating the members’ tax credit.
• 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.
• Married filing combined - $100,000
• Single, head of household, married filing separate, and qualifying widow(er) - $85,000
• Removing the income limits from the calculation of public pension benefits taxability means less public pension benefits will be subject to tax.
• Removing the income limits from the social security benefits will result in 100% of social security benefits no longer being taxable in Missouri.
• 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