SB 428
Modifies provisions relating to the deduction of federal income taxes paid
Sponsor:
LR Number:
1873S.01I
Committee:
Last Action:
1/25/2021 - S First Read
Journal Page:
Title:
Calendar Position:
28
Effective Date:
August 28, 2021

Current Bill Summary

SB 428 - Current law allows a taxpayer to deduct from his or her Missouri adjusted gross income a portion of his or her federal income taxes paid. For the tax year beginning on or after January 1, 2021, and ending on or before December 31, 2021, this act provides that federal income tax credits enacted by the 117th U.S. Congress, and received as a stimulus payment related to severe acute respiratory syndrome coronavirus 2, shall not be considered when determining the amount of federal income tax liability allowable as a deduction under current law. (Section 143.171)

This provision is substantially similar to a provision contained in HCS/SB 676 (2020), HCS/SS/SCS/SB 570 (2020), and HCS/SS#2/SB 704 (2020).

Current law also requires taxpayers who itemize deductions to include any federal income tax refund amounts in his or her Missouri adjusted gross income if such taxpayer previously claimed a deduction for federal income tax liability on his or her Missouri income tax return. For the tax year beginning on or after January 1, 2021, and ending on or before December 31, 2021, this act provides that any amount of a federal income tax refund attributable to a tax credit enacted by the 117th U.S. Congress, and received as a stimulus payment related to severe acute respiratory syndrome coronavirus 2, shall not be included in the taxpayer's Missouri adjusted gross income. (Section 143.121)

This provision is substantially similar to a provision contained in HCS/SB 676 (2020), HCS/SS#2/SB 704 (2020), and HCS/SS/SCS/SB 570 (2020).

JOSH NORBERG

Amendments

No Amendments Found.