My question is about the Instructions for MO-A in regard to MO subtractions. I had a fair amount of US government obligations in treasuries, savings bonds, and in some mutual funds where I could calculate the percent of such obligations for each fund. That amount totaled OK and transferred to the MO-A, Line 8. Everything in the Review is fine, and I'm ready to efile. However, I noticed something odd about that Line 8 that made me seek out the actual instructions. This is what I found:
Line 8 -Interest from exempt Federal obligations include in Federal AGI. Attach a detailed list or all Federal Forms 1099.
So...I decided to download the actual instructions for the MO-A, Line 8 of the subtractions. This is what it says:
"Interest from direct obligations of the U.S. Government, such as U.S.
savings bonds, U.S. treasury bills, bonds, and notes is exempt from
state taxation under the laws of the United States. Attach a detailed
list or all Federal Forms 1099. Taxpayers who claim exclusion
for interest from direct U.S. obligations must identify the specific
securities owned, e.g., “U.S. savings bond”. A general description
such as “interest on U.S. obligation” or “U.S. Government securities”
is not acceptable. (See Missouri Regulation 12 CSR 10-2.150 for the
taxability of various U.S. Government related obligations.) Failure to
identify the specific security will result in the disallowance of the
deduction. (emphasis added)
"A federally taxed distribution received from a mutual fund investing
exclusively in direct U.S. Government obligations is exempt. If
the mutual fund invests in both exempt (direct) and non-exempt
(indirect) federal obligations, the deduction allowed will be the
distribution received from the mutual fund attributable to the interest
on the direct U.S. Government obligations, as determined by the
mutual fund. Attach a copy of the year-end statement received
from the mutual fund showing either the amount of money received
or the percentage of funds received from direct U.S. Government
obligations, or a summary statement received from the mutual fund
which clearly identifies the exempt and non-exempt portions of the
U.S. Government obligation interest. The statement does not need
to list each obligation separately. Failure to attach the requested
document will result in the disallowance of the deduction. (emphasis added)
There's no way to do all that with efiling. And hundreds of thousands Missourians likely efile each year and have an entry on the MO-A Line 8 in their returns. So surely they don't all resort to paper filing. So when efiling, can I presume that nothing additional needs to be attached even though the instructions literally say it is required? The TurboTax filing instructions that print out make no mention of it.
