Missouri Form Help

The following information has been provided to assist in the preparation of Missouri state tax returns.

 

MO Form 1040

 

Filing Status

 

You must use the same filing status as on your Federal Form

1040 with two exceptions:

1. Box E may be checked only if all of the following apply:

   (1) you checked Box 3 (married filing separate) on your federal return;

   (2) your spouse had no income and is not required to file a federal return; and

   (3) your spouse qualifies as an exemption on your return and was not a dependent of someone else.

2. Box B must be checked if you are claimed as a dependent on another person's federal tax return and you checked the "yes" box on Federal Form 1040EZ, Line 5; or you were not allowed to check Box 6a on Federal Form 1040A or Federal Form 1040. 

 

Non-Obligated Spouse

 

If you have any other liability due the state of Missouri, your income tax refund may be applied to that liability. If you are filing a combined return and the state of Missouri is seeking to use your spouse's state tax refund to offset his/her state liability, you are entitled to receive your portion of the combined return refund as a non-obligated spouse. Check the appropriate box if you are a non-obligated spouse and wish to receive your portion of the refund. The non-obligated spouse refund apportionment applies to state agency debts only. Since the IRS is not a state agency, IRS offsets are not excluded from the non-obligated spouse refund apportionment.

 

Line 10, Tax from Federal Return

 

 

If you have an earned income credit, it will be subtracted from the tax on the federal return. If less than zero, zero is entered on line 10.

 

Here is the way this line is calculated. Lines referenced are from the Federal 1040:

 

1040EZ Return - Line 10 minus line 8a

 

1040A Return - Line 35 minus line 40a and any alternative minimum tax included on line 28

 

1040 Return - Line 57 minus line 45 minus line 66a

 

1040X Return – Line 8c minus Line 13c

 

Line 11, Other Federal Tax

 

This line automatically calculates the total amount of lines 45, 51, 60 and any recapture taxes included on line 63 from Federal Form 1040. Do not include FICA tax, railroad retirement tax or self-employment tax on this line.

 

Line 17, Long-Term Care Insurance Deduction

 

If you paid premiums for a qualified long-term care insurance in 2014, you may be eligible for a Missouri deduction. Complete the worksheet only if you paid premiums for a qualified long-term care insurance policy; and the policy is for at least 12 months coverage. Enter the long-term care premiums as a medical expense on the Federal Schedule A, with an "L" code in the State Use field.

 

Line 22, Enterprise Zone Income or Rural Empowerment Zone Modification

 

Enterprise Zone Income Modification:

If you or your spouse has exempt income from a business facility located in an enterprise zone that has been approved by the Department of Economic Development, enter one-half of the Missouri taxable income attributed to the new business facility in the enterprise zone on line 22.

 

Rural Empowerment Zone Modification:

If you or your spouse has exempt income from a new business facility located in a rural empowerment zone that has been approved by the Department of Economic Development, enter the Missouri taxable income attributed to the new business facility in a rural empowerment zone on line 22.

 

You may not claim either modification without notification of approval from the Department of Economic Development.

 

Line 26, Resident Credit

 

This credit is computed on Form MO-CR and automatically carries to line 26.  If filing a combined return, one spouse may use Form MO-CR and the other may use the Form MO-NRI.

 

Line 27, Nonresident Missouri Percentage

 

If you were a nonresident of Missouri or a part-year resident filing as a nonresident, you may be entitled to reduce your Missouri income tax liability. Form MO-NRI, Nonresident Income Percentage, must be completed to determine the percentage(s) that can be applied to your tax on line 25 to reduce your Missouri tax liability. The percentage(s) determined on MO-NRI automatically carries to line 27.

 

Line 29, Lump Sum Distribution

 

Federal Form 4972 calculates the tax on lump sum distribution for the state of Missouri and carries to line 29. Be sure to mark the Lump Sum Distribution checkbox.

 

Line 34, Missouri Tax Withheld for Nonresident Partners or S-Corp Shareholders

 

Enter on line 34 the amount withheld from your distributive share by the partnership or S corporation, if you are a nonresident partner or S Corp shareholder as shown on MO-2NR, line 8.

 

Line 35, Nonresident Entertainer Tax Withholding

 

Enter on line 35 your share of the amount withheld from gross earnings as a nonresident entertainer, as shown on Form(s) MO-2ENT, Line 6.

 

Line 37, Miscellaneous Tax Credits

 

You may be eligible for certain tax credits. The total amount of the credit is computed by completing MO-TC. The total tax credit amount from Form MO-TC, line 13 automatically carries to line 37.

 

Line 38, Property Tax Credit

 

You may be eligible for this credit if you or your spouse were age 65 or older as of 12/31/2007, and you or your spouse were a resident of Missouri for the entire year or you or your spouse were a veteran of any branch of the armed forces of the U.S. or this state who became 100% disabled as a result of such service or you or your spouse are disabled (as previously defined) or you were age 60 or older receiving surviving spouse social security benefits. Your total household income cannot exceed $27,000 if married filing combined or $25,000 if single or married filing separate. If you or your spouse meet the eligibility requirements, prepare Form MO-PTS. The credit automatically carries to line 38.

 

MO Form MO-A

Line 9, Combat Pay Included in AGI

 

Combat Pay Included in Federal Adjusted Gross Income Earned by Military Personnel with a Missouri Home of Record. The IRS allows enlisted members, warrant officers and commissioned warrant officers to exclude their military pay received while serving in a combat zone, or while hospitalized as a result of injuries incurred while serving in a combat zone. The exclusion of combat pay received by a commissioned officer (other than a commissioned warrant officer) is limited to the highest rate of enlisted pay. Subtract all military income received while serving in a combat zone, which is included in Federal Adjusted Gross Income (FAGI) and is not otherwise excluded. In most cases combat pay is not included in Box 1, Wages, of Form W-2 and therefore is not included in FAGI. However if Box 1 includes combat pay, the portion consisting of combat pay may be taken as a subtraction for Missouri purposes.

 

Line 9, Railroad Retirement Benefits

 

Railroad Retirement Benefits Administered by the Railroad Retirement Board, such as all Tier I and Tier II benefits and any railroad retirement sick pay, disability, and unemployment benefits, included in federal adjusted gross income (FormMO-1040, Line 1), are exempt from state taxation. Enter code “R” on the 1099R in the State Use Type field for the pension to be eligible for this deduction.

 

Line 12, Depreciation Adjustment

 

If you purchased an asset between July 1, 2002 and June 30, 2003, and you elected to use the 30 percent depreciation on your federal return, you may be able to subtract a portion of the depreciation. This amount is computed by figuring the allowable depreciation/ Section 179 expense prior to the Job Creation and Worker Assistance Act less the depreciation/Section 179 taken on your federal return. If you have previously taken an addition modification for a qualifying property, but have sold or disposed of the property during the taxable year, check the box on Line 12 and take a subtraction for the amount not previously recovered.

 

MO-A Part 3 Pension and Social Security/Social Security Disability Exemption

 

Public pensions are pensions received from any federal, state, or local government. If you have questions about whether your pension is a public or a private pension, contact your pension administrator. Enter code “P” or “M” on the 1099R in the State Use Type field for the pension to be considered an eligible public pension. Code “M” means Military public pension.

 

Pensions entered on the 1099R with no State Use Type code are considered private pensions.

 

 

St. Louis Form E-1

 

This Form (E-1) must be filed by residents and non-residents of the city, whenever Earnings Tax has not been totally withheld from salaries, wages, tips or other compensation as reported on the W-2 Form, less any income derived from stock options. If you have self-employment or 1099-MISC income, you must use Earnings Tax Form E-234.

 

A resident is subject to Earnings Tax on gross income, (less any income derived from stock options) regardless of where earned. Military Active Duty and Reserve pay are also subject to the Earnings Tax.

 

All W-2’s entered in the return will be taken to the E-1 return. The local tax withheld will be considered St. Louis withholding on the E-1 return on W-2’s that are entered with STL or ST LOUIS in the Locality name field.

 

Line 3. Non-Residency Deduction (Schedule NR)

A non-resident is subject to Earnings Tax on their gross income within St. Louis City. Non-residents who work both inside and outside the city can make a deduction of salary based on whole days worked out of the city (if you report to a city work site during a day, you cannot count that day as worked out of the city).

 

New residents who move into the city during the year may use this schedule to calculate their deduction for wages earned outside the city, prior to their residency. Please submit lease or closing statement as proof.

 

All claims for non-residency deductions must be supported by a verification letter on company letterhead, signed by the employer, stating the total days worked outside the city during the year. Without this letter and copy of your W-2, the refund will not be allowed.

St. Louis Form E-234

 

The annual Earnings Tax Return, Form E-234, must be filed by every resident or non-resident individual, corporation or partnership, (which includes a joint venture, pool, syndicate, LLC, etc.) regardless of profit or loss, who or which maintains a business or professional office, branch office, warehouse, inventory or conducts any type of business (including self-employment), service or other activity or operation within the City of St. Louis. A city resident who maintains a business or is a partner in a business outside of the City of St. Louis is subject to the Earnings Tax. All 1099-MISC Income is reported on Form E-234.

 

Schedule C’s that are entered with the resident city of “ST LOUIS” will be automatically carried to the E-234.

 

Items that should be reported as other income (loss):

 

- Commissions, fees, etc.

- Interest, royalties and rent derived from that specific conduct of business or other activity are subject to City Earnings Tax except (1) dividends, and (2) interest upon the obligations of State of Missouri, or any political subdivision thereof of the United States or its possessions.

- Capital gains are taxable in full and capital losses are deductible in full, where property sold constitutes a business asset.

 

Deductions

All necessary expenses of operation are allowable deductions from gross receipts. Non-allowable deductions are: Federal and State Income Taxes, City Earnings Tax, contributions, life insurance premiums including those on partners or corporate individuals, corporate dividends, withdrawals and other charges to capital or surplus.

 

Kansas City Form RD-109

 

This Form RD-109 must be filed by residents and non-residents of the city, who derive income from salaries, wages, commissions for which the tax has not been withheld by the employer. If you have self-employment or 1099-MISC income, you must use Profits Return-Earnings Tax Form RD-108.

 

W-2’s with MKC or Kansas City in the  Locality name field will be taken to the RD-109 return. The local tax withheld will be considered Kansas City withholding on the RD-109 return on W-2’s that are entered with MKC or Kansas City in the Locality name field.

 

Non-Resident  Form RD-109NR

Nonresidents of Kansas City must complete Form RD-109NR to obtain a REFUND for earnings tax paid y a nonresident for services performed outside the city of Kansas City, Missouri. A nonresident is subject to Earnings Tax on their gross income earned within the city of Kansas City, MissouriMissouri nonresidents who work both inside and outside the city can make a deduction of salary based on whole days worked out of the city. A resident or domiciliary is subject to earnings tax on gross earnings regardless of where earned.

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Kansas City  Form RD-108

 

The annual Earnings Tax Return, Form RD-108, must be filed by every resident or non-resident individual who derives income from an unincorporated business, association, profession, or other business activity.

 

Schedule C’s that are entered with the resident city of “Kansas City” will be automatically carried to the RD-108.