Missouri Military Filing Information
The servicemembers Civil Relief Act prevents military personnel from being taxed on military income by any state other than their home of record state. The Military Spouses Residency Relief Act prevents income earned by servicemembers’ spouses from being taxed by any state other than the state they declare as their state of residence.
Missouri Home of Record
If you entered the armed forces in Missouri, your home of record is presumed to be Missouri and you are presumed to be domiciled in Missouri.
Missouri Home of Record—Stationed Outside Missouri
If you: (a) maintained no permanent living quarters in Missouri during the year; (b) maintained permanent living quarters elsewhere; and (c) did not spend more than 30 days of the year in Missouri, you are considered a nonresident for tax purposes and your military pay, interest, and dividend income are not taxable to Missouri. Complete Form MO-NRI and attach to Form MO-1040.
Note: If your spouse remains in Missouri more than 30 days while you are stationed outside Missouri, your total income, including
your military pay, is taxable to Missouri.
If you are the spouse of a military servicemember, are stationed outside of Missouri and Missouri is your state of residence, any
income you earn is taxable to Missouri. If you earn more than $1,200 you must file a Missouri return (Form MO-1040).
Missouri Home of Record—Stationed in Missouri
If your home of record is Missouri and you are stationed in Missouri due to military orders, all of your income, including your
military pay, is taxable to Missouri.
Missouri Home of Record—Entering or Leaving the Military
If you are entering or leaving the military,Missouri is your home of record, and you spend more than 30 days in Missouri, your
total income, including your military pay, is taxable to Missouri.
Non-Missouri Home of Record – Stationed in Missouri
The military pay of nonresident military personnel stationed in Missouri due to military orders is not taxable to Missouri. If you are a servicemember and earned only military income while stationed in Missouri, complete a No Return Required-Military Online Form at the following address: http://dor.mo.gov/military/.
If you are a military servicemember and earned $600 or more in Missouri in non-military income, this non-military income is taxable to Missouri and cannot be subtracted from your federal adjusted gross income on your Missouri return (Form MO-1040).
If you are the spouse of a military servicemember, are in Missouri because the military servicemember is stationed in Missouri on military orders, and your state of residence is another state, any income earned by you is not taxable to Missouri. However, if you earn more than $600 you must file a Missouri return (Form MO-1040) and provide verification of your state of residence. Acceptable verification may include any of the following: a copy of your 2016 state income tax return filed in your state of residence, 2016 property tax receipts, current driver license, vehicle registration, or voter identification card. You must report the military pay of the servicemember and your income on Form MO-A, Part 1, Line 9, as a “Military (Nonresident)” subtraction to your federal adjusted gross income. For additional information, please visit http://dor.mo.gov/military/.
Military Income of Nonresident Military Personnel.
Enter the amount of any military income received by nonresident military personnel stationed in Missouri. The Civil Relief Act, H.R. 100, prohibits states from including the military income of a nonresident servicemember when determining the individual income tax rate for either the servicemember or the servicemember’s spouse on a combined return. Nonresident active duty military servicemembers who are required to file a 2016 Missouri return may subtract the military income received from their federal adjusted gross income. Nonresident servicemembers’ spouses, who are in Missouri due to military orders, and have declared another state as their state of residence, may subtract their income from their federal adjusted gross income. Attach a copy of the Form W-2 reporting your military income
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.
EXAMPLE 1: A resident of Missouri, is an enlisted member of the military. He enters a combat zone in July and is there through December. He earns $12,000 January through June, and earns $20,000 July through December. Box 1 of his Form W-2 should only
indicate the $12,000 he received prior to entering the combat zone. He is not entitled to a subtraction, as his combat pay is not included in his FAGI.
EXAMPLE 2: A resident of Missouri, is a high-ranking commissioned officer. He enters a combat zone in July and is there through December. He earns $50,000 January through June, and earns $70,000 July through December. The IRS limits his exclusion to $40,000, causing Box 1 of his Form W-2 to indicate $80,000. He is entitled to a subtraction of $30,000, which represents the portion of Box 1 of Form W-2 attributable to combat pay that is included in his FAGI.