2013 Tax Year Changes
Corporation Income and Franchise Tax
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:
Additional information can be obtained on the Frequently Asked Questions page.
- The due date for the 2013 Missouri Individual Income Tax Return is April 15, 2014.
Military Service Member Exemption
- Beginning January 1, 2013, 60 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.
- The following tax credits have an extended sunset date of December 31, 2019:
- Public Safety Officer Surviving Spouse Credit
- Champion for Children Credit (previously CIC)
- Residential Dwellings Accessibility Credit
- Pregnancy Resource Center Credit
- Food Pantry Credit
The Pregnancy Resource Center Credit, Food Pantry Credit, and Champion for Children Credit apply to donations made on or after January 1, 2013.
- Three new tax credits have been added to the 2013 Missouri Individual Income tax return, more information is available in the MO-1040 instruction guide.
- Missouri Works Credit (MWC)
- Sporting Event Credit (SEC)
- Sporting Contribution Credit (SPC)
- A new Pediatric Cancer Research Trust Fund tax credit was introduced in 2013. The two digit code and additional information is available in the MO-1040 instruction guide.
- The Affordable Care Act of 2010 imposed an “additional Medicare tax” of 0.9% on wages and self-employment income that went into effect for tax year 2013. The additional Medicare tax is reported on the Medicare tax line of your Missouri Itemized Deduction Schedule on your Missouri Individual Income Tax Return. Taxpayers must complete Federal Form 8959 before calculating the amount to report on their Missouri return. Please see the instructions for your tax return..
Federal income tax changes affecting the Missouri income tax return consist of the following:
- Standard deduction amounts:
- Single - $6,100
- Married filing combined or qualifying widow(er) - $12,200
- Head of household - $8,950
- Married filing separate - $6,100
- Federal Exemption amount $3,900;
- Taxpayers 65 or blind – $1,200 ($1,500 if single or head of household);
- FICA amount - $7,049;
- Railroad retirement amounts:
- Tier I - $7,049
- Tier II - $3,709