16290: MO - Schedule A Itemized Deductions, Part 2

Many entries will carry from federal data entry, when present. Overrides for Part 2 are available on the MO A2 screen. Use this guide to prepare the Missouri Itemized Deductions. The following list provides filing tips for each line. 

• Social Security (FICA) tax - This amount represents the social security tax withheld on the taxpayer's W2.
  • This amount is limited to federal’s maximum withholding amount and is further reduced for benefits were received with Tier I Railroad Retirement Benefits.
    • Reduce the maximum deduction by any excess Social Security and Tier I benefit withheld.
• Railroad Retirement Tax - Railroad Retirement Tier(s) I and II withholdings will be carried automatically if they are withheld and reported on the W2.
  • Since the W2 statement does not provide direct entries for such withholdings, enter the following codes to carry the amount to MO automatically, or use the provided overrides.
    • Enter RRT1 in the federal W2 screen, box 14 for tier 1. 
    • Enter RRT2 in the federal W2 screen, box 14 for tier 2.
  • Missouri follows the maximum federal withholding and, similarly to Social Security, it will reduce excess withholdings (see line 2 for more information about this).

• Medicare Withholding and Railroad Medicare Tax - Medicare withholding from wages and Medicare Railroad Retirement withholdings are both reported on line 4 of the Missouri Schedule A.
  • Medicare withholdings flow from the federal W2 screen, box 6. 
  • Enter railroad Medicare tax by using the code RRTM on the federal W2 screen, box 14. Alternatively, use the override available on the MO A2 screen. 
  • Note: “Additional Medicare Tax” will include line 17 of the federal Form 8959 (Additional Medicare Tax on Medicare Wages) and also deduct line 23 (Medicare Tax withholding on Railroad Retirement).
• State and Local Income Tax - This line never includes deductible Sales Tax reported on the federal Schedule A.
  • Note: the Part 2 worksheet (bottom section of the MO_A.pg2) should be used for deductible state and local tax levels exceeding:
    • $5,000 (married filing separately filers), or 
    • $10,000 (all other taxpayers).
• Earnings Tax. Kansas City and/or Saint Louis tax withheld will be carried automatically to this line and the total will reduce the reported state and local taxes.
  • Use the override provided on the A2 screen if the withholding amounts were not entered on boxes 19 & 20 of the federal W2 screen.