- Introduced -

SB 524 - Under the "claim of right" provision of federal law, a taxpayer is allowed to recalculate taxes previously paid but subsequently determined to have been paid in error. The usual situation is when a taxpayer claims income in a prior taxable year and pays tax on it, discovers at a later time that the income should not have been claimed, and returns that amount in a later year. The federal statute allows that taxpayer to calculate income tax for the year in which the amount is returned and to take either a deduction or a credit.

Under current law, Missouri taxpayers are allowed to take the deduction but not the credit. This act would authorize that credit.

RUSS HEMBREE