Missouri Public Pension Exemption
For tax year 2010, married couples with Missouri adjusted gross income less than $100,000 and single individuals with Missouri adjusted gross income less than $85,000, may deduct the greater of $6,000 or 65% of their public retirement benefits on their Missouri income taxes, to the extent the amounts are included in their federal adjusted gross income.
A breakdown of the yearly percentage is as follows:
| Year | Limit |
|---|---|
| 2009 | 50% |
| 2010 | 65% |
| 2011 | 80% |
| 2012 and forward | 100% |
- The total public pension exemption is limited to the maximum Social Security benefit of each spouse.
- Married couples with Missouri adjusted gross income greater than $100,000 and single individuals with Missouri adjusted gross income greater than $85,000, may qualify for a partial exemption.
- There is no age requirement for eligibility.
Visit www.dor.mo.gov for more information regarding eligibility. Or you may contact the Missouri Department of Revenue at (573) 751-3505, email income@dor.mo.gov or consult a tax professional for more information.
Missouri Income Tax Withholding Information
PSRS/PEERS employees do not offer tax advice. The following information is provided as a reference only. It is recommended that you speak with your tax professional or the Missouri Department of Revenue for tax advice.
- The maximum Missouri tax withholding for any person is 6% of Missouri taxable income.
- To calculate your Missouri tax withholding:
website calculator: http://dort.mo.gov/tax/calculators/withhold
Federal Taxes May Not Be Withheld in a Specified Dollar Amount
The IRS does not allow the withholding of federal taxes in a specified dollar amount. You may, however, choose to withhold an amount based on the number of allowances you choose and federal tax tables, with an additional dollar amount withheld.
Example:
Tax filing status: married
Number of exemptions: 0
This results in a withholding amount of $450.
If the desired withholding amount is $500, the member in this example should select a tax status of married, with zero exemptions, and an additional monthly withholding amount of $50.
Members who establish a new withholding amount or change their withholding amount must follow this rule. Those members with previously-designated specified federal tax withholding amounts will continue to have that specified amount withheld until a change is requested.
Please contact your tax advisor or visit www.irs.gov for more information.