Missouri Itemized Deductions
Long-Term Care Insurance Deduction
If you paid premiums for qualified longterm care insurance in 2011, you may be eligible for a deduction on your Missouri income tax return. Qualified long-term care insurance is defined as insurance coverage for a period of at least 12 months for long-term care expenses should such care become necessary because of chronic health conditions and/or physical disabilities including cognitive impairment or the loss of functional capacity, thus rendering an individual unable to care for themself without the help of another person. Note: You cannot claim a deduction for amounts paid toward death benefits or extended riders.
Health Care Sharing Ministry/New Jobs Deduction
- Health Care Sharing Ministry - If you made contributions to a qualifying health care sharing ministry, enter the amounts you paid in 2011. Do not include amounts excluded from your federal taxable income.
- New Jobs - If you were a small business owner and hired new employees in 2011, refer to Form MO-NJD to see if you qualify for a deduction.
Enterprise Zone Income or Rural Empowerment Zone Modification
To claim the Enterprise Zone Income or Rural Empowerment Zone Modification, you must first receive notification of approval from the Department of Economic Development.
- Enterprise Zone Income Modification: If you or your spouse have 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 (refer to Form 4354).
- Rural Empowerment Zone Modification: If you or your spouse have exempt income from a new business facility located within a rural empowerment zone that has been approved by the Department of Economic Development, enter the Missouri taxable income attributed to a new business facility in a rural empowerment zone. For additional information on either modification, you can contact the Department of Economic Development, Incentives Section, P.O. Box 118, Jefferson City, MO 65102-0118.
Pension and Social Security/Social Security Disability/Military Exemption
Public Pension Exclusion - Public pensions are pensions received from any federal, state, or local government. If you have questions about whether your pension is public or private, contact your pension administrator. Include the taxable 2011 public pension for each spouse. This information can be found on:
- Federal Form 1040A - Line 12b
- Federal Form 1040 - Line 16b
Do not include any payments from private pensions, social security benefits or railroad retirement payments. Exception: If you are 100% disabled, you may consider railroad retirement as taxable public pension.
Social Security Disability - A disabled individual, receiving social security disability income for the entire taxable year should enter on Line 5, the amount of federal taxable benefits, which can be foun on:
- Federal Form 1040A - Line 14b
- Federal Form 1040 - Line 20b
Taxable social security disability benefits must be allocated by each spouse's share of the benefits received for the year.
Military Pension Exclusion - A military pension is a pension received for your service in a branch of the armed services of the United States, including the Missouri Army Reserve and Missouri National Guard. You must reduce your military pension exemption by any portion of your military pension that is included in the calculation of your public pension exemption. Therefore, if you qualify for the public pension, make sure you complete the Public Pension Calculation (Section A) before you calculate your military pension exmeption.
- Taxable Military Retirement Benefits - Include your total military retirement benefits reported on federal Form 1040, Line 16b. If you are filing a combined return and both spouses had military retirement, combine those amounts.
- Taxable Public Pension - Multiply the percentage calculated on Line 3 by the total public pension amount reported on Line 14 of Section A.
Railroad Retirement Tax & Medicare Tax
Include the amount of railroad retirement tax withheld from your wages, Tier I and Tier II, during 2011. This amount cannot exceed $7,575 (Tier I maximum of $4,486 and Tier II maximum of $3,089.) Enter the total on Line 4. Repeat for your spouse and enter the total on Line 5. Note: If you have both FICA and railroad retirement tax, the maximum deduction allowed is the amount withheld as shown on the Form W-2(s) less, either the amount entered on Federal Form 1040, Line 69, or, if only one employer, the amount refunded by the employer.
If you entered an amount on Line 8 and you live or work in the Kansas City or St. Louis area, you may have included earnings taxes. Include on Line 9 the amount of earnings taxes withheld shown on Form W-2(s). Earnings Tax will be shown in Box 19 of your W-2.
**You cannot itemize your Missouri deductions if you took the Standard Deduction on your federal return. You must itemize your Missouri Deductions if you were required to itemize on your federal return.**