Bill > HB1438

This bill modifies the Missouri state income tax deduction for military personnel, specifically for National Guard members and reserve component service members. Starting from the tax year 2020, the bill allows taxpayers to progressively deduct an increasing percentage of military income from their Missouri state tax returns. The deduction applies to income earned during inactive duty training (IDT), annual training (AT), reserve component service, National Guard bonuses (starting in 2025), and state-funded military orders like state active duty (SAD) or state emergency duty (SED) (starting in 2026). The deduction percentage increases annually: 20% in 2020, 40% in 2021, 60% in 2022, 80% in 2023, and 100% from 2024 onward. Importantly, the bill explicitly excludes compensation received while performing civilian federal service or in positions requiring military uniform from this tax deduction. For married couples filing combined returns, the deduction can also be applied to their joint adjusted gross income.

https://house.mo.gov/Bill.aspx?bill=HB1438&year=2025&code=R