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Article #: 16385
The federal income tax deduction, reported on line 13 of Form MO-1040, is adjusted by income. Taxpayers with moderate or high AGI (see the chart below) will see this deduction reduced until the Missouri Gross Income reaches $125,001. At this point, the deduction is completely eliminated.
| If the MO gross income is… | the deduction percentage is… |
|---|---|
| $25,000 or less | 35% |
| From $25,001 to $50,000 | 25% |
| From $50,001 to $100,000 | 15% |
| From $100,001 to $125,000 | 5% |
| $125,001 or more | 0% |
If the taxpayer’s Missouri Adjusted Gross Income exceeds $125,001, they will no longer be able to deduct any of the federal taxes paid.
See the Missouri Revised Statutes 143.171 for details.