Standard Deductions

• When you file your taxes in Missouri, you are granted an exemption and a standard tax deduction based on your filing status. For example, for the 2010 tax filing year, a couple with a "married, filing jointly" status had an exemption amount of $4,200. The standard deduction for a couple with this same status was $11,400. If you run a business or claim additional deductions that would entitle you to an itemized deduction total greater than $11,400, you can itemize deductions on Form MO-A, Individual Income Tax Adjustments. If you had to itemize your deductions on your federal income tax return, you must itemize them for the state instead of taking the standard deduction, even if it is a larger amount.
  
  

Deductions From Your Federal Return

• If you run a small business or have work expenses, you probably deducted business expenses from your federal income tax return. Your business expenses were deducted from your business income to create your net profit or loss from business, which became part of your income for the year. The Missouri state individual income tax return Form MO-1040 references the income totals from your federal return. While you do not report your business expenses directly to the state, your business deductions appear in the adjusted income total from your federal taxes.
  
  

Federal Income Tax Deduction

• On the MO-1040, you must specify the various taxes that made up your federal tax total. Missouri offers a married, filing jointly couple the opportunity to claim up to a $10,000 federal tax deduction, while every other filing status can claim up to a $5,000 deduction. To claim this credit, you copy the amount of your total federal tax onto the "Federal tax deduction" line or enter the maximum award for your filing status if your tax liability extends past the deduction cutoff.
  
  

Health Care Sharing Ministry and Long-Term Care Insurance Deductions

• Contributions to a qualifying health care sharing ministry during a tax year are tax deductible dollar-per-dollar on the MO-1040. However, amounts excluded from your federal taxable income cannot be counted. If you had to pay premiums on long-term care health insurance for a policy with at least 12 months of coverage, you may also be eligible for a deduction. The MO-1040 instruction booklet contains a worksheet for calculating the amount you can claim based on your expenses.
  
  

The MOST Deduction

• Missouri allows parents and future college students to save for college through MOST, Missouri's 529 College Savings Plan. Up to $8,000 per year for an individual taxpayer, and up to $16,000 per year for a married, filing jointly couple can be put into a MOST savings account and then claimed as a deduction on your Missouri state income tax return. The savings remain free from state and federal income tax until they are withdrawn. Funds withdrawn for qualified educational expenses are not assessed federal or Missouri income tax at any point.