Missouri state form is only giving 59% deduction of military retired pay. It should be 100%. Can anyone tell me why it is not 100%.

[ProblemTax]

The Missouri state tax form is only  exempting 59 % of my military retired pay.  It should exempt 100%.  Please advise why it is not?

[ToddL · Accepted solution]

There are two possible reasons you aren't seeing a 100% deduction for your military retired pay.

1. You must reduce your military pension exemption by any portion of your military pension that is included in the calculation of your public pension exemption. Therefore, if you qualify for the public pension, make sure you complete the Public Pension Calculation (Section A) before you calculate your military pension exemption.

2.  The total Pension and Social Security/Social Security Disability/Military Exemption can also be limited based on your income. 

From the Missouri Department of Revenue Military Reference Guide

"Married couples with Missouri adjusted gross income less than $100,000 and single individua...

[ProblemTax]

Thanks, this helps a lot.

[ToddL]

My pleasure!