According to the Missouri website, legislation provides a deduction for active duty pay, included in your Federal Adjusted Gross Income, on your Missouri return. Review the information provided on the Missouri website for qualifications.
A deduction for inactive duty income is also provided, as a member of the National Guard Inactive Duty Training, National Guard Annual Training, or the Reserves (component of the Armed Forces).
To claim the subtraction on your Missouri return, follow these steps in the program
- State Section
- Missouri Resident Return
- Other Deductions
- Military Income Deduction or Inactive Duty Military Income Deduction
- Select "Continue" to Save
If you are a nonresident of Missouri, your active duty pay earned in Missouri is not taxable on the nonresident return.
To claim the subtraction, follow these steps in the program:
- State Section
- Nonresident Missouri Return
- Subtractions from Income
- Enter Other Subtractions from Income and select the type below
- Enter the active duty pay amount in the appropriate box
- Scroll down and answer "Is other subtraction from Military Nonresident Income?
- Select "Yes"
- Select "Continue" to Save
If one spouse is a resident of Missouri and the other is not, you should file separate state returns. To do this within the program, you can file the federal return and wait for the return to be accepted. Then, change the filing status for the primary taxpayer and file a separate return for the first spouse. The second spouse will need to create a new account and file a separate return in that account.
Military Retirement:
If you or your spouse received a public, private, or military pension, social security, or social security disability, you may enter an exemption from taxable income.
PLEASE NOTE: The program automatically makes this deduction.
To view the deduction, follow these steps in the program:
- State Section
- Missouri Return
- Subtractions from Income
- Enter your qualifying amount in the box labeled Military Pension Subtraction
- Select "Continue" to Save
Combat Pay:
Your combat pay is not included in your taxable wages on your W-2. It should be listed in Box 12 with Code Q. If your combat pay is included in your Box 1 wages on your W-2, you must enter a subtraction into the program to correct the income.
To enter the subtraction into your resident return, follow these steps in the program:
- State Section
- Missouri Resident Return
- Subtractions From Income
- Enter Other Subtractions from Income and select the type below (enter the amount of the combat pay)
- Scroll down to 'Is other subtraction from Combat pay included in Federal AGI?' Select "Yes"
- Select "Continue" to Save