143.121. Missouri adjusted gross income.
Missouri adjusted gross income.
143.121. 1. The Missouri adjusted gross income of a resident individualshall be the taxpayer's federal adjusted gross income subject to themodifications in this section.
2. There shall be added to the taxpayer's federal adjusted gross income:
(1) The amount of any federal income tax refund received for a prioryear which resulted in a Missouri income tax benefit;
(2) Interest on certain governmental obligations excluded from federalgross income by Section 103 of the Internal Revenue Code. The previoussentence shall not apply to interest on obligations of the state of Missourior any of its political subdivisions or authorities and shall not apply to theinterest described in subdivision (1) of subsection 3 of this section. Theamount added pursuant to this subdivision shall be reduced by the amountsapplicable to such interest that would have been deductible in computing thetaxable income of the taxpayer except only for the application of Section 265of the Internal Revenue Code. The reduction shall only be made if it is atleast five hundred dollars;
(3) The amount of any deduction that is included in the computation offederal taxable income pursuant to Section 168 of the Internal Revenue Code asamended by the Job Creation and Worker Assistance Act of 2002 to the extentthe amount deducted relates to property purchased on or after July 1, 2002,but before July 1, 2003, and to the extent the amount deducted exceeds theamount that would have been deductible pursuant to Section 168 of the InternalRevenue Code of 1986 as in effect on January 1, 2002;
(4) The amount of any deduction that is included in the computation offederal taxable income for net operating loss allowed by Section 172 of theInternal Revenue Code of 1986, as amended, other than the deduction allowed bySection 172(b)(1)(G) and Section 172(i) of the Internal Revenue Code of 1986,as amended, for a net operating loss the taxpayer claims in the tax year inwhich the net operating loss occurred or carries forward for a period of morethan twenty years and carries backward for more than two years. Any amount ofnet operating loss taken against federal taxable income but disallowed forMissouri income tax purposes pursuant to this subdivision after June 18, 2002,may be carried forward and taken against any income on the Missouri income taxreturn for a period of not more than twenty years from the year of the initialloss; and
(5) For nonresident individuals in all taxable years ending on or afterDecember 31, 2006, the amount of any property taxes paid to another state or apolitical subdivision of another state for which a deduction was allowed onsuch nonresident's federal return in the taxable year unless such state,political subdivision of a state, or the District of Columbia allows asubtraction from income for property taxes paid to this state for purposes ofcalculating income for the income tax for such state, political subdivision ofa state, or the District of Columbia.
3. There shall be subtracted from the taxpayer's federal adjusted grossincome the following amounts to the extent included in federal adjusted grossincome:
(1) Interest or dividends on obligations of the United States and itsterritories and possessions or of any authority, commission or instrumentalityof the United States to the extent exempt from Missouri income taxes pursuantto the laws of the United States. The amount subtracted pursuant to thissubdivision shall be reduced by any interest on indebtedness incurred to carrythe described obligations or securities and by any expenses incurred in theproduction of interest or dividend income described in this subdivision. Thereduction in the previous sentence shall only apply to the extent that suchexpenses including amortizable bond premiums are deducted in determining thetaxpayer's federal adjusted gross income or included in the taxpayer'sMissouri itemized deduction. The reduction shall only be made if the expensestotal at least five hundred dollars;
(2) The portion of any gain, from the sale or other disposition ofproperty having a higher adjusted basis to the taxpayer for Missouri incometax purposes than for federal income tax purposes on December 31, 1972, thatdoes not exceed such difference in basis. If a gain is considered a long-termcapital gain for federal income tax purposes, the modification shall belimited to one-half of such portion of the gain;
(3) The amount necessary to prevent the taxation pursuant to thischapter of any annuity or other amount of income or gain which was properlyincluded in income or gain and was taxed pursuant to the laws of Missouri fora taxable year prior to January 1, 1973, to the taxpayer, or to a decedent byreason of whose death the taxpayer acquired the right to receive the income orgain, or to a trust or estate from which the taxpayer received the income orgain;
(4) Accumulation distributions received by a taxpayer as a beneficiaryof a trust to the extent that the same are included in federal adjusted grossincome;
(5) The amount of any state income tax refund for a prior year which wasincluded in the federal adjusted gross income;
(6) The portion of capital gain specified in section 135.357, RSMo, thatwould otherwise be included in federal adjusted gross income;
(7) The amount that would have been deducted in the computation offederal taxable income pursuant to Section 168 of the Internal Revenue Code asin effect on January 1, 2002, to the extent that amount relates to propertypurchased on or after July 1, 2002, but before July 1, 2003, and to the extentthat amount exceeds the amount actually deducted pursuant to Section 168 ofthe Internal Revenue Code as amended by the Job Creation and Worker AssistanceAct of 2002;
(8) For all tax years beginning on or after January 1, 2005, the amountof any income received for military service while the taxpayer serves in acombat zone which is included in federal adjusted gross income and nototherwise excluded therefrom. As used in this section, "combat zone" meansany area which the President of the United States by Executive Orderdesignates as an area in which armed forces of the United States are or haveengaged in combat. Service is performed in a combat zone only if performed onor after the date designated by the President by Executive Order as the dateof the commencing of combat activities in such zone, and on or before the datedesignated by the President by Executive Order as the date of the terminationof combatant activities in such zone; and
(9) For all tax years ending on or after July 1, 2002, with respect toqualified property that is sold or otherwise disposed of during a taxable yearby a taxpayer and for which an addition modification was made undersubdivision (3) of subsection 2 of this section, the amount by which additionmodification made under subdivision (3) of subsection 2 of this section onqualified property has not been recovered through the additional subtractionsprovided in subdivision (7) of this subsection.
4. There shall be added to or subtracted from the taxpayer's federaladjusted gross income the taxpayer's share of the Missouri fiduciaryadjustment provided in section 143.351.
5. There shall be added to or subtracted from the taxpayer's federaladjusted gross income the modifications provided in section 143.411.
6. In addition to the modifications to a taxpayer's federal adjustedgross income in this section, to calculate Missouri adjusted gross incomethere shall be subtracted from the taxpayer's federal adjusted gross incomeany gain recognized pursuant to Section 1033 of the Internal Revenue Code of1986, as amended, arising from compulsory or involuntary conversion ofproperty as a result of condemnation or the imminence thereof.
7. (1) As used in this subsection, "qualified health insurance premium"means the amount paid during the tax year by such taxpayer for any insurancepolicy primarily providing health care coverage for the taxpayer, thetaxpayer's spouse, or the taxpayer's dependents.
(2) In addition to the subtractions in subsection 3 of this section, onehundred percent of the amount of qualified health insurance premiums shall besubtracted from the taxpayer's federal adjusted gross income to the extent theamount paid for such premiums is included in federal taxable income. Thetaxpayer shall provide the department of revenue with proof of the amount ofqualified health insurance premiums paid.
**8. (1) Beginning January 1, 2009, in addition to the subtractionsprovided in this section, one hundred percent of the cost incurred by ataxpayer for a home energy audit conducted by an entity certified by thedepartment of natural resources under section 640.153, RSMo, or theimplementation of any energy efficiency recommendations made in such an auditshall be subtracted from the taxpayer's federal adjusted gross income to theextent the amount paid for any such activity is included in federal taxableincome. The taxpayer shall provide the department of revenue with a summaryof any recommendations made in a qualified home energy audit, the name andcertification number of the qualified home energy auditor who conducted theaudit, and proof of the amount paid for any activities under this subsectionfor which a deduction is claimed. The taxpayer shall also provide a copy ofthe summary of any recommendations made in a qualified home energy audit tothe department of natural resources.
(2) At no time shall a deduction claimed under this subsection by anindividual taxpayer or taxpayers filing combined returns exceed one thousanddollars per year or cumulatively exceed two thousand dollars per taxpayer ortaxpayers filing combined returns.
(3) Any deduction claimed under this subsection shall be claimed for thetax year in which the qualified home energy audit was conducted or in whichthe implementation of the energy efficiency recommendations occurred. Ifimplementation of the energy efficiency recommendations occurred during morethan one year, the deduction may be claimed in more than one year, subject tothe limitations provided under subdivision (2) of this subsection.
(4) A deduction shall not be claimed for any otherwise eligible activityunder this subsection if such activity qualified for and received any rebateor other incentive through a state-sponsored energy program or through anelectric corporation, gas corporation, electric cooperative, or municipallyowned utility.
9. The provisions of subsection 8 of this section shall expire onDecember 31, 2013.
(L. 1972 S.B. 549, A.L. 1977 S.B. 46, A.L. 1986 S.B. 669, et al., A.L. 1989 H.B. 35, et al., A.L. 1990 H.B. 960, A.L. 2002 S.B. 1248, A.L. 2003 S.B. 11, A.L. 2004 S.B. 1394, A.L. 2005 S.B. 252, A.L. 2006 H.B. 1440 and H.B. 1944 § 2, A.L. 2007 H.B. 444, et al. merged with H.B. 818, A.L. 2008 S.B. 748 merged with S.B. 1181, et al.)*This section was amended by S.B. 748 which was effective 6-23-08, this section was also amended by S.B. 1181, et al., which was effective 8-28-08.
**Subsection 8 of this section expires 12-31-13.