Missouri income tax

Introduction: In Missouri, the individual income taxes are collected and processed by the Missouri Department of Revenue . The tax is progressive, and individuals pay a percentage based on their taxable income . Information regarding the filing requirements for different categories of people, tax benefits and exemptions, and rights of the tax payers are discussed in the following paragraphs.

Filing requirements: you are not required to file a Missouri return if you are not required to file a federal return . If you are required to file a federal return, you may still not be required to file a Missouri return under the following situations.

  • If you are a resident and have less than @1,200 of Missouri adjusted gross income

  • If you are a non resident with less than $600 of Missouri income;

  • If your Missouri adjusted gross income is less than the amount of your standard deduction and your personal exemption put together .

    • If you are not required to file a Missouri return, but have received a W-2 form indicating that you had Missouri tax withheld, you must file a Missouri return to get a refund of your Missouri withholding. The filing status used on your Missouri return must match the filing status used on your federal return .

    Residents: An individual is considered a Missouri resident if he/she is not domiciled (Domicile or home of record is the place which an individual intends to be his/her permanent home . a domicile, once established, continues until the individual moves to a new location with the true intention of making his/her permanent home there . An individual can have only one domicile at a given time .) in Missouri but did have permanent living quarters in Missouri and has spent more than 183 days of the taxable year in Missouri. As a Missouri resident with income from another state, you may be able to claim a credit for tax paid to that state . For this you have to complete Form MO-CR and submit a copy of the other states returns and all W-2 forms with your Missouri return.

    Nonresidents: An individual domiciled in Missouri is considered a non-resident for tax purposes if the individual maintains no permanent place of abode in Missouri; maintains a permanent place of abode elsewhere ; and spends no more than 30 days of the taxable year in aggregate in Missouri.

    If you are a non-resident, you can claim a Missouri income percentage, which reduces your Missouri tax liability by taxing only on their Missouri source income. For this, complete Form MO_NRI and submit a copy of your federal return and all W-2 forms with your Missouri return.

    Part-year Residents: an individual domiciled elsewhere prior to moving to Missouri or establishes domicile elsewhere after moving from Missouri is considered a part year resident. A part- year resident is treated as a nonresident, but may determine his tax just like a resident for the entire year .

    As a part-year resident, you may choose between the Missouri resident credit (MO-CR) and the Missouri income percentage (MO-NRI), whichever benefits you more. On a joint return, one of the spouses may take the Missouri income percentage and the other the Missouri resident credit.

    Military personnel: The tax status of military personnel under the Missouri income tax law and the Service members Relief Act is determined by the domicile of the service member . The military personnels domicile is presumed to be his or her home of record .

    If a military persons federal adjusted gross income includes military pay received while serving in a combat zone, that portion of combat pay may be subtracted on the Missouri return. In most cases, the Internal Revenue Service (IRS) allows enlisted members, warrant officers and commissioned officers to exclude the military pay received while serving in a combat zone, therefore no deduction is necessary on the Missouri return. However, if a military persons combat pay is included in Form W-2 Box 1, Wages, and included in their federal adjusted gross income, a subtraction is allowed using Form MO-A .

    Rights of a Missouri income tax payer: Missouri statutes include strong incentives for voluntary tax compliance, at the same time protecting the tax payers against inappropriate tax collections . The general assembly has constructed laws to promote fairness, confidentiality and consistency in application. The following are among the important rights given by the law to the tax payers in Missouri.

  • Need to pay only the least tax due: you have the right to plan and arrange your finances in such a way so that you will have to pay only the least amount of tax due under law .

  • Courtesy and consideration: You have the right to be treated fairly, with courtesy and consideration all times by the employees of the Department of Revenue .

  • Privacy and Confidentiality: you have the right to have your personal and financial information to be kept confidential .

  • Information and assistance: You own the right to information and assistance in complying with the tax laws .

  • Abatement of erroneous tax: you may petition the Department of Revenue to abate any tax due that was erroneously or illegally assessed . Individual income tax petitions must be submitted in writing and mailed to :

    • Missouri Department of Revenue,

    P.O.Box 385,

    Jefferson City, MO 65105-0385

  • Extension of time: if you need additional time to file your Missouri income tax return, and have a good cause to support it, you may file an extension (Form MO-60, Application for Extension of Time to file for corporate income/franchise tax) of up to six months .

  • Reason for underpayment: If you are sent a billing(Notice of Adjustment) by the Department of Revenue requesting either an initial payment or an additional payment for income taxes, you have a right to know why the department has determined you owe the amount billed .

  • Protest of deficiency: If you dont respond to the Notice of Adjustment, you will be issued a Notice of Deficiency by certified mail . You have the right to dispute the amount assessed in a Notice of Deficiency by filing an official protest with the Department of Revenue within 60 days (150 days if outside the U .S.) of the date you were sent the notice.

  • Interest on overpayments: you will receive interest from the department of Revenue on any overpayment of the income tax due for a filing period if the department doesnt refund you the amount overpaid within four months of the date you file your return, the original due date, or the extended due date, whichever is later .

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