With the start of the New Year comes the beginning of tax season. Here are some frequently asked questions for filers in the state of Missouri.
Missouri Tax Question #1: What are the minimum filing requirements in Missouri?
This answer depends on your marital status and income levels, which will differ from federal levels. You do not have to file a Missouri return if you do not have to file a federal one, and you may not have to file a Missouri return even if you do file a federal return. For someone filing single, the federal AGI (adjusted gross income) is $8,450 while the Missouri AGI is $7,250. For married persons filing joint returns, double those amounts.
Missouri Tax Question #2: Which tax form should I use?
Missouri has simplified short forms that may be used as long as certain requirements are met. For example, form MO-1040A is used by any filing status, but only a one-income earner, with all income earned in Missouri. Form MO-1040B is used by married persons filing joint returns. Both of these forms mandate that filers do not have any tax credits or modifications to their income.
Missouri Tax Question #3: What are my personal exemption amounts?
The amount of personal exemptions in Missouri differs from the federal amount, even though filing status must be the same on both your Missouri tax return and federal tax return. The 2006 federal personal exemption is $3,300. In Missouri, for someone filing single the personal exemption amount is $2,100. That amount is doubled for married persons filing joint returns.
To determine the standard deduction to be used on both federal and Missouri state tax returns, the following formula is used. Check one box if you are 65 and older, and check one box if you are blind. The same two boxes are used for your spouse as well, if applicable. Your standard deduction depends on how many “boxes” are checked; this amount increases with each box. For example, if you are single without any boxes checked, your standard deduction is $5,150. However, if you are 65 and older or blind, the amount goes up to $6,400. And, if you are 65 and older AND blind, the standard deduction amount increases to $7,650.
Missouri Tax Question #5: What if I am claimed as a dependent on my parent or guardian’s return?
For someone filing single in Missouri, but is claimed as a dependent on another person’s return, the standard deduction may not exceed the greater of $850 or the sum of $300 and the individual’s earned income, up to the $5,150 standard deduction amount for singles.
In order to itemize your deductions on your Missouri return, you must itemize your deductions on your federal return first. If you don’t, you won’t be able to itemize deductions in Missouri. In addition, if you are required to itemize deductions on your federal return, you are also required to itemize deductions in Missouri. Missouri law requires a taxpayer to start with the itemized deductions on their federal return first; in Missouri, you can either take the standard deduction or itemize your deductions, whichever is to your advantage.
Missouri Tax Question #7: What if I am a member of the military stationed in Missouri?
The tax status of military personnel is determined by the individual’s home of record. State tax must be withheld from military personnel residing in Missouri in most cases. If a servicemember does not reside in Missouri, they are not subject to Missouri income tax on their military pay. However, even if you are not required to pay Missouri tax, you must still file form MO-NRI, Missouri Income Percentage, in order to verify that you are not subject to Missouri tax.
The 2007 deadline for filing taxes is April 16. (Typically, a calendar year return must be filed by April 15, but if the day falls on a Saturday, Sunday or legal holiday, the return is still timely if filed on the next business day.)
