New Missouri Public Pension Exemption

For tax year 2009, 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 50% 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.

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
  2009 Missouri Income Tax Reference Guide: http://dor.mo.gov/tax/misc/refguide.pdf

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, elect 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 elected: 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.