SS#2/SCS/HCS/HBs 444, 217, 225, 239, 243, 297, 402, & 172 - This act phases in a state income tax exemption over the course of six years for social security benefits received by taxpayers age sixty-two and older, social security disability benefits, or retirement benefits received by a taxpayer, age sixty-two and older, from sources other than privately funded sources, but not to exceed the maximum social security benefit available for the tax year. For taxable year 2007, a taxpayer may deduct a maximum of twenty percent of such benefits included in federal adjusted gross income. For taxable year 2008, the maximum amount of the deduction is increased to thirty-five percent of such benefits included in federal adjusted gross income. For taxable year 2009, the maximum amount of the deduction is increased to fifty percent of such benefits included in federal adjusted gross income. For taxable year 2010, the maximum amount of the deduction is increased to sixty-five percent of such benefits included in federal adjusted gross income. For taxable year 2011, the maximum amount of the deduction is increased to eighty percent of such benefits included in federal adjusted gross income. For all taxable years beginning on or after January 1, 2012, the maximum deduction will be equal to one hundred percent of the amount of such benefits included in federal adjusted gross income may be deducted from income thereby exempting such payments from state income tax. Single taxpayers with adjusted gross incomes of eighty five thousand dollars or less, and married taxpayers filing combined returns with adjusted gross income of one hundred thousand dollars or less will qualify for the maximum deduction. To the extent a taxpayer's adjusted gross income exceeds the income thresholds, the deduction will be decreased by one dollar for every dollar in excess of the thresholds. Where a taxpayer receives both social security benefits and retirement benefits from sources other than privately funded sources, the maximum deduction for publicly funded retirement benefits will be decreased by one dollar for every dollar of social security benefits received by a taxpayer to the extent such benefits are not included in Missouri adjusted gross income. JASON ZAMKUS
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