143.125. Social Security benefits income tax exemption--amount--rulemaking authority.
Social Security benefits income tax exemption--amount--rulemakingauthority.
143.125. 1. As used in this section, the following terms mean:
(1) "Benefits", any Social Security benefits received by a taxpayerage sixty-two years of age and older, or Social Security disabilitybenefits;
(2) "Taxpayer", any resident individual.
2. For the taxable year beginning on or after January 1, 2007, anytaxpayer shall be allowed to subtract from the taxpayer's Missouri adjustedgross income to determine Missouri taxable income a maximum of an amountequal to twenty percent of the amount of any benefits received by thetaxpayer and that are included in federal adjusted gross income underSection 86 of the Internal Revenue Code of 1986, as amended. For thetaxable year beginning on or after January 1, 2008, any taxpayer shall beallowed to subtract from the taxpayer's Missouri adjusted gross income todetermine Missouri taxable income a maximum of an amount equal tothirty-five percent of the amount of any benefits received by the taxpayerand that are included in federal adjusted gross income under Section 86 ofthe Internal Revenue Code of 1986, as amended. For the taxable yearbeginning on or after January 1, 2009, any taxpayer shall be allowed tosubtract from the taxpayer's Missouri adjusted gross income to determineMissouri taxable income a maximum of an amount equal to fifty percent ofthe amount of any benefits received by the taxpayer and that are includedin federal adjusted gross income under Section 86 of the Internal RevenueCode of 1986, as amended. For the taxable year beginning on or afterJanuary 1, 2010, any taxpayer shall be allowed to subtract from thetaxpayer's Missouri adjusted gross income to determine Missouri taxableincome a maximum of an amount equal to sixty-five percent of the amount ofany benefits received by the taxpayer and that are included in federaladjusted gross income under Section 86 of the Internal Revenue Code of1986, as amended. For the taxable year beginning on or after January 1,2011, any taxpayer shall be allowed to subtract from the taxpayer'sMissouri adjusted gross income to determine Missouri taxable income amaximum of an amount equal to eighty percent of the amount of any benefitsreceived by the taxpayer and that are included in federal adjusted grossincome under Section 86 of the Internal Revenue Code of 1986, as amended.For all taxable years beginning on or after January 1, 2012, any taxpayershall be allowed to subtract from the taxpayer's Missouri adjusted grossincome to determine Missouri taxable income a maximum of an amount equal toone hundred percent of the amount of any benefits received by the taxpayerand that are included in federal adjusted gross income under Section 86 ofthe Internal Revenue Code of 1986, as amended. A taxpayer shall beentitled to the maximum exemption provided by this subsection:
(1) If the taxpayer's filing status is married filing combined, andtheir combined Missouri adjusted gross income is equal to or less than onehundred thousand dollars; or
(2) If the taxpayer's filing status is single, head of household,qualifying widow(er), or married filing separately, and the taxpayer'sMissouri adjusted gross income is equal to or less than eighty-fivethousand dollars.
3. If a taxpayer's adjusted gross income exceeds the adjusted grossincome ceiling for such taxpayer's filing status, as provided insubdivisions (1) and (2) of subsection 2 of this section, such taxpayershall be entitled to an exemption equal to the greater of zero or themaximum exemption provided in subsection 2 of this section reduced by onedollar for every dollar such taxpayer's income exceeds the ceiling for hisor her filing status.
4. The director of the department of revenue may promulgate rules toimplement the provisions of this section. Any rule or portion of a rule,as that term is defined in section 536.010, RSMo, that is created under theauthority delegated in this section shall become effective only if itcomplies with and is subject to all of the provisions of chapter 536, RSMo,and, if applicable, section 536.028, RSMo. This section and chapter 536,RSMo, are nonseverable and if any of the powers vested with the generalassembly pursuant to chapter 536, RSMo, to review, to delay the effectivedate, or to disapprove and annul a rule are subsequently heldunconstitutional, then the grant of rulemaking authority and any ruleproposed or adopted after August 28, 2007, shall be invalid and void.
(L. 2007 H.B. 444, et al.)