Missouri Standard Deduction – Missouri’s Standard deduction amount is now equal to the Federal Standard deduction amounts.
- Single or Married Filing Separate - $12,200
- Married Filing Combined - $24,400
- 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 reduced by a percentage based on Missouri AGI. The overall limit for the deduction is still $5,000 ($10,000 if Married Filing Jointly)
|
If the Missouri AGI is: |
Then 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% |
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.
Federal Reserve Bank Interest Subtraction- Starting with the 2019 tax year, a subtraction is allowed from federal adjusted gross income for the interest accrued from deposits held in a Federal Reserve Bank.
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 – The following credits have been added to the Missouri State return:
- 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.
Revisions to Current Tax Credits – The following changes have been made to current State 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.
You can read more about Missouri's tax law changes here.