2012 Tax Year Changes

Corporation Income and Franchise Tax

• Small Business Deduction for New Jobs Under Section 143.173, RSMo. (HB45)

Important Notice

Small Business Deduction for New Jobs Under Section 143.173, RSMo. (HB45)

For all taxable years beginning on or after January 1, 2011, and ending on or before December 31, 2014, if a small business creates new jobs, it may qualify to claim a deduction in the taxable year each new employee completes at least 52 weeks of full-time employment.  The deduction can be claimed by the following types of small businesses:  sole proprietor, C-Corporation, or LLC treated as a corporation; and can be claimed on the Individual Income Tax Return or a Corporation Income Tax Return.  Below are revised or new tax forms:

• MO-NJD
• MO-1120
• MO-1120 Instructions

Additional information can be obtained on the Frequently Asked Questions page. 

Individual Income Tax

Due Date

• The due date for the 2012 Missouri Individual Income Tax Return is April 15, 2013.

Military Service Member Exemption

• Beginning January 1, 2012, 45 percent of a military pension income will be exempt from Missouri state tax. This tax deduction will increase 15 percent annually until January 1, 2016, when all military pension income will be tax free. Pension Exemption may be taken on the Form MO-1040, MO-A, Part 3, Section D.

Form Changes

• For all taxable years beginning on or after January 1, 2011, and ending on or before December 31, 2014, if a small business creates new jobs, it may qualify to claim a deduction in the taxable year each new employee completes at least 52 weeks of full-time employment. The deduction is equal to $10,000 for each new job created or $20,000 for each new job created by a small business that paid at least 50 percent of all employees’ health insurance premiums. For tax years ending on or after August 28, 2012, S-corporations, limited liability companies, limited liability partnerships or pass-through business entities may also qualify for the small business deduction for new jobs under Section 143.173, RSMo.
• The refund debit card option was added to the refund line on the Missouri return.

Federal income tax changes affecting the Missouri income tax return consist of the following:

• Standard deduction amounts:
• Single - $5,950
• Married filing combined or qualifying widow(er) - $11,900
• Head of household - $8,700
• Married filing separate - $5,950
• Federal Exemption amount $3,800;
• Taxpayers 65 or blind – $1,150 ($1,450 if single or head of household);
• FICA amount - $4,624;
• Railroad retirement amounts:
• Tier I - $4,624
• Tier II - $3,194