Bill > SB1440

This bill modifies the tax treatment of contributions to 529 savings accounts (tax-advantaged investment accounts designed to help families save for educational expenses) in Missouri. Currently, taxpayers can deduct up to $8,000 in annual contributions for individual filers and $16,000 for married couples filing jointly when calculating Missouri adjusted gross income. The bill maintains this deduction structure with two key changes: first, it extends the current deduction rules through tax year 2025, and second, starting in tax year 2026, the deduction will be specifically limited to contributions made to the Missouri education program or deposit program. The bill also reaffirms that assets and income from these 529 programs remain exempt from state taxation, provided the funds are used for qualified educational expenses. If funds are distributed and not used for education, withdrawn before an established minimum time period, or not transferred according to specific IRS guidelines, the distributed amount will be included in the taxpayer's Missouri adjusted gross income. These tax provisions apply retroactively to tax years beginning on or after January 1, 2008, with some specific provisions for the deposit program dating back to tax years beginning on or after January 1, 2004.

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https://www.senate.mo.gov/BillTracking/Bills/BillInformation?year=2026&BillID=19786