Does Missouri tax military retirement even if not earned in Missouri?

Question

We will soon be moving to Perryville, Missouri and will have military retirement and would like to know what is the taxable amt. if any......... Thanks

Answer 1

In Missouri - All out-of-state government pensions qualify for the public employee pension exemption of $6,000 ($12,000 for joint couple) if their Missouri adjusted gross income (not including federal taxable social security benefits) is less than $25,000 per year for single filers, or $32,000 for married filing jointly. Exemptions are phased out for taxpayers, whose income is greater than $31,000 for single filers, or $44,000 for married filing jointly when both are receiving pensions.

Answer 2

I would have to look it up. But, generally if there is an amount in box 3 of the 1099 it is taxable at the federal and state levels. However, if a civil service retirement isn't taxable in that state then neither is a military retirement. But, the military is usually very good at this and marks the 1099 correctly almost all the time.

I can't keep up with all the the states all the time...could I look it up and answer your question...yes. But, this is what I get paid for doing.

Answer 3

Yes, it will be taxable. MO does offer an exemption for retirement if you have a VERY low income, however even a minimum wage job will put you over the limit for the exemption.

Answer 4

All pensions are taxable but up to 12,000 is exempt per link below if total income is not too high. Also see Military Personnel paragraph in this link - but ignore it since it pertains to active personnel.

http://dor.mo.gov/tax/personal/individual/forms/2006/m1040i.htm

Answer 5

As a general rule, your state of residency taxes your retirement benefits as they are received. Not the state or states that they may have been earned in.