What's New?
2023 Legislative Session
2023 Individual Income Tax Year Changes
The following changes are effective for the tax year beginning January 1, 2023, and will be reflected on the 2023 Missouri Individual Income Tax Returns.
NOTE: Changes are subject to modifications pending special session.
Due Date
- The due date for the 2023 Missouri Individual Income Tax Return is April 15, 2024.
- The extension due date for the 2023 Missouri Individual Income Tax Return is October 15, 2024.
- The Adoption Tax Credit, Food Pantry Tax Credit, and Champion for Children Tax Credit are all due April 15, 2024.
Tax Rate Changes
– Indexed for Inflation
|
If the Missouri taxable income is...
|
The tax is...
|
| $0 to $1,207 | $0 |
| Over $1,207 but not over $2,414 | 2.00% of excess over $1,207 |
| Over $2,414 but not over $3,621 | $24 plus 2.50% of excess over $2,414 |
| Over $3,621 but not over $4,828 | $54 plus 3.00% of excess over $3,621 |
| Over $4,828 but not over $6,035 | $90 plus 3.50% of excess over $4,828 |
| Over $6,035 but not over $7,242 | $132 plus 4.00% of excess over $6,035 |
| Over $7,242 but not over $8,449 | $180 plus 4.50% of excess over $7,242 |
| Over $8,449 | $234 plus 4.95% of excess over $8,449 |
Missouri Standard Deduction
Missouri’s standard deduction is equal to the federal standard deduction. Below are the standard deduction amounts that changed for the 2023 tax year:
- Single - $13,850
- Married Filing Combined - $27,700
- Married Filing Separate - $13,850
- Head of Household - $20,800
- Qualified Widow(er) - $27,700
New Income Tax Subtractions
- Business Income Tax Deduction (Section 143.022)
- The business income tax deduction has increased to 20% for the 2023 tax year.
- Currently the business income subject to this subtraction is income reported as total combined profit on the IRS Schedule C and partnership and S corporation income or loss reported to the IRS on Part II of Schedule E. This subtraction has been updated to include income reported as total combined profit by farmers on the IRS Schedule F and the IRS Form 4835.
- Employee Stock Ownership Income Tax Deduction Extension (Section 143.114)
- This restarts the previously sunset Employee Stock-Ownership Program (ESOP) which gave an income tax deduction for participants in an ESOP program beginning for all tax years on or after January 1, 2023.
- Federal Broadband Grants’ Income Tax Deduction (Section 143.121)
- Taxpayers can now receive a subtraction from their federal 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. This subtraction only applies to grant funds received on or after August 28, 2023.
New Income Tax Deductions
- Missouri Farmland Sold to a Beginning Farmer (Section 143.121)
- Farmers can receive a deduction of a set percentage of their capital gains received from the sale of farmland or the dollar amount not to exceed $25,000 of capital gains received from the rent, lease, crop sharing agreement for their farmland as long as it is sold, rented, leased, crop shared with a beginning farmer.
- This deduction only applies to capital gains or rental, lease, crop share income received on or after August 28, 2023.
- To qualify for this deduction you must include a certification provided by the Missouri Department of Agriculture validating the sale, rental, lease, or crop share agreement qualified.
- The Department is currently working on a new form and instructions.
Tax Credits
- Show MO Act Tax Credit Program (FPC) (Section 135.750)
- This restarts and modifies the previously sunset Film Production tax credit program. It is renamed the Show MO Act.
- The Show Mo Act Tax Credit applies to tax years beginning on or after January 1, 2023.
- A qualifying 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.
- The Show Mo Act Tax Credit Program will be administered by the Missouri Department of Economic Development.
- Intern & Apprentice Recruitment Tax Credit Program (Section 135.457)
- The Intern and Apprentice Recruitment Tax Credit program applies to tax years beginning on or after January 1, 2024.
- This tax credit of $1,500 (per intern or apprentice) is allowed to taxpayers who hire an intern or apprentice and meets the qualifications established in Section 135.457 RSMo.
- These credits are not refundable and cannot be carried forward or sold. The annual cap on the program is $1 million.
- The Intern and Apprentice Recruitment Tax Credit Program will be administered by the Missouri Department of Economic Development.
- Ethanol Retailer and Distributor Tax Credit Program (Section 135.772)
- The Ethanol Retailer and Distributor Tax Credit Program allows a credit to qualified Missouri ethanol retailers or distributors who sells qualified ethanol higher blend fuel in the state of Missouri; beginning on January 1, 2023. For taxpayer’s whose tax year begins prior to January 1, 2023, but ends during 2023; a credit is available for the fuel sold during calendar year 2023.
- The credit is calculated at $0.05 (5 cents) per gallon of higher ethanol blend fuels sold.
- This credit will be apportioned if the annual program cap of $5,000,000 is exceeded.
- The Ethanol Retailer and Distributor Tax Credit cannot be refunded, but can be carried forward 5 years. This credit cannot be transferred or sold.
- The Ethanol Retailer and Distributor Tax Credit Program is administered by the Missouri Department of Revenue.
- Biodiesel Retailer’s Tax Credit Changes (Section 135.775)
- This credit is applicable to a retail dealer that sells a biodiesel blend at a retail service station or a distributor that sells biodiesel blend directly to the final user located in the state of Missouri.
- The Biodiesel Retailer and Distributor Tax Credit Program starts on January 1, 2023. For taxpayer’s whose tax year begins prior to January 1, 2023, but ends during 2023; a credit is available for the fuel sold during calendar year 2023.
- The Biodiesel Retailer and Distributor Tax Credit is calculated as follows:
- Two cents ($0.02) per gallon of biodiesel blend of at least five percent but not more than ten percent sold by the retail dealer at a retail service station or by a distributor directly to the final user located in this state during the tax year for which the tax credit is claimed; and
- Five cents ($0.05) per gallon of biodiesel blend in excess of ten percent but not more than twenty percent sold by the retail dealer at a retail service station or by a distributor directly to the final user located in this state during the tax year for which the tax credit is claimed.
- This credit will be apportioned if the annual program cap of $16,000,000 is exceeded.
- The Biodiesel Retailer and Distributor Tax Credit is refundable, but cannot be carried forward. This credit cannot be transferred or sold.
- The Biodiesel Retailer and Distributor Tax Credit Program is administered by the Missouri Department of Revenue.
- Biodiesel Producer’s Tax Credit Program (Section 135.778)
- This credit is applicable to Missouri biodiesel producers who produce biodiesel fuel in the state of Missouri and has begun construction on such facility or has been selling biodiesel fuel produced at such facility on or before January 2, 2023.
- The Biodiesel Producer Tax Credit Program starts on January 1, 2023. For taxpayer’s whose tax year begins prior to January 1, 2023, but ends during 2023; a credit is available for the fuel produced during calendar year 2023.
- The credit is calculated at two cents ($0.02) per gallon of biodiesel fuel produced in the state of Missouri, during the tax year for which the tax credit is claimed.
- This credit is issued on a first-come, first-serve bases and has an annual cap of $5,500,000.
- This credit is refundable. It cannot be carried forward, sold, or transferred.
- The Biodiesel Producer Tax Credit Program is administered by the Missouri Department of Revenue.
Other
- DSS’ SNAP & TANF Renewal Eligibility Forms Can Be Filed with Your Tax Return (Section 208.066)
- Clients in the Supplemental Nutrition Assistance program (SNAP), the Temporary Assistance for Needy Families program (TANF), the child care assistance program, and the MOHealthNet program can attach their renewal eligibility forms to their Missouri income tax return.
- The Department of Revenue will then send the forms to DSS for processing
- DSS Forms
- Missouri Working Family Credit (Section 143.177)
- The Missouri Working Family Credit will begin with the 2023 tax year.
- A taxpayer can receive a credit of 10 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
- A copy of your federal return must be attached to your Missouri individual income tax return to receive the credit.