How Do I Complete the Missouri Federal AGI Allocation Menu?

If you are filing a Missouri nonresident or part-year resident return, you may need to allocate portions of your Federal Adjusted Gross Income (FAGI) between the taxpayer and spouse. The Federal Adjusted Gross Income Allocation Menu helps determine how income and adjustments are attributed for Missouri income percentage calculations.

What Is the Federal Adjusted Gross Income Allocation Menu?

The Federal Adjusted Gross Income Allocation Menu is used when Missouri requires income to be allocated between spouses. This commonly applies when filing a joint federal return but Missouri needs separate income information to calculate each individual's Missouri income percentage.

The program automatically pulls income amounts from the federal return when possible. Review each category carefully and update the allocation if the amounts should be assigned differently between the taxpayer and spouse.

The screen includes the following allocation categories:

• State and Local Income Tax Refunds – Refunds reported as taxable income from prior-year state or local tax returns.
• Capital Gain or Loss from Federal Schedule D – Net capital gains and losses reported on Schedule D.
• Other Gains or Losses from Federal Form 4797 – Gains or losses from the sale of business property.
• Rents, Royalties, Partnerships, S Corporations, Trusts, etc. – Income or loss reported from rental activities and pass-through entities.
• Taxable Social Security Benefits – The taxable portion of Social Security benefits included in federal income.
• Other Income or Loss – Any other income or loss included in federal adjusted gross income that does not fit the categories above.
• Total Federal Adjustments – Federal adjustments that reduce or increase adjusted gross income.

How Do I Complete the Federal Adjusted Gross Income Allocation Menu?

1. From the Missouri return, navigate to the Federal Adjusted Gross Income Allocation Menu.
2. Review each income category displayed on the screen.
3. Enter the amount attributable to the Taxpayer in the corresponding field.
4. Enter the amount attributable to the Spouse in the corresponding field.
5. Verify that the allocations match the income ownership shown on the federal return and supporting documents.
6. Select Continue to save the entries and proceed through the Missouri return.

Helpful Tips

• Allocate income to the spouse who actually earned or owns the income whenever possible.
• Review federal source documents before changing any prefilled amounts.
• Incorrect allocations can affect Missouri income percentage calculations and the resulting Missouri tax liability.
• If you are filing as a Missouri resident and the allocation is not required, the program may automatically calculate the appropriate amounts.
• Ensure that any federal adjustments entered are assigned to the correct spouse when filing a joint federal return.

Missouri Instructions

For additional information on Missouri nonresident and part-year resident income allocation and income percentage calculations, see the Missouri Department of Revenue instructions:

Missouri Form MO-NRI Instructions

You can also review Missouri's nonresident and part-year resident guidance:

Missouri Nonresident and Part-Year Resident Information

Program Pathway

• State Section 
• Edit the Missouri return using the three dots
• Federal Adjusted Gross Income Allocation