SB 574 - Under current federal law, a taxpayer's social security benefits are exempt from taxation unless the taxpayer's modified adjusted gross income plus one-half of the social security benefits received exceed a base amount. Under the current rules, the maximum amount includible in gross income is 85% of the social security benefits received in the tax year.

This act authorizes the subtraction from a taxpayer's federal adjusted gross income of any amounts of social security benefits included in federal gross income when calculating Missouri adjusted gross income.

The act has an effective date of January 1, 1999.

This act is similar to SB 81 from 1997.
RUSS HEMBREE