Bill > SB994

This bill modifies provisions related to filing income tax returns in Missouri by repealing and reenacting several sections of existing law. Key changes include adjustments to what is added to or subtracted from a taxpayer's federal adjusted gross income to determine their Missouri adjusted gross income, such as clarifying the treatment of federal income tax refunds related to certain COVID-19 relief measures and modifying rules for military income deductions, with a significant expansion of the military income subtraction to 100% for all tax years beginning on or after January 1, 2027, regardless of duty status or filing status. The bill also updates the due date for filing income tax returns to align with the federal tax code, introduces a new provision to protect taxpayers from penalties, interest, and additions to tax if a tax credit is denied solely due to reaching a cumulative maximum, and modifies requirements for employers regarding electronic filing of wage withholding information. Additionally, it clarifies that a taxpayer who has paid a deficiency that is later found to be erroneous is entitled to a refund, and for tax years beginning on or after January 1, 2026, tax returns will be required to indicate the name of the taxpayer's public school district.