Bill > HB1233

This bill modifies Missouri's income tax deduction for military personnel, specifically National Guard members and reservists, by expanding the types of military income that can be tax-deductible. Starting in 2020, the bill allows a gradual increase in the percentage of military income that can be deducted from state taxes, beginning at 20% in 2020 and reaching 100% by 2024. The deduction now includes income from inactive duty training (IDT), annual training (AT), reserve component service, and starting in 2025, will also cover bonuses for joining or reenlisting, as well as state active duty (SAD) and state emergency duty (SED). Importantly, the bill explicitly excludes compensation received while performing civilian federal service, even if it involves wearing a military uniform. If a service member files a joint tax return with a spouse, they can deduct a percentage of their military income from their combined adjusted gross income. This legislation aims to provide increasing tax relief for military personnel serving in the National Guard and reserve components.

https://house.mo.gov/Bill.aspx?bill=HB1233&year=2025&code=R