Why is Turbo Tax counting all of my 2024 Missouri public pension as taxable income?

[bribrenkinkade]

Beginning in 2024, Missouri does not tax public pension income up to the amount of the Social Security maximum.

[BillM223]

Your taxable social security benefits (line 6b on the 1040) should appear in form MO-A, Section B, line 2, and on Section C, line 4Y (depending on which souse has the SS benefits).

This number would flow through to be part of for MO-1040, line 8.

Are you saying that you don't see the numbers at the locations I have described?

P.S., the Missouri return in my DC/download software appears to be working correctly. Are you perhaps using the Online product?

[bribrenkinkade]

First, I can't see the tax form because I have not completed and paid for the service, and I don't want to pay for the service if i am uncomfortable with the accuracy of the calculation.  I am using the online application.

The problem is not with Social Security.  I have a state government pension.  I am a retired state employee.  Before 2024, public pension income was exempt for taxpayers under a certain income threshold.  The Missouri General Assembly changed the law (which became effective January 1, 2024) to remove the income limit on the pension exemption, but limit the exemption to the amount of the full federal Social Security benefit and reduced by the amount of any Social Security exemption claimed.  Based on my understanding of the law about $43,000 of my state pension should be exempt from Missouri tax.  I did not receive Social Security in 2024.  THe only information Turbo Tax provides is that it checked if I qualify for a public pension exemption and that I do not.  There is no explanation or calculation to show how it arrives at that conclusion.  Here is the MO DOR's summary of the change in law: https://dor.mo.gov/faq/taxation/individual/pension-tax-year-2024.html

[MO Tax Payer]

I just spend 40 minutes on the phone with Turbo Tax with the same problem. After all of that time they said the following: 1) if your retirement was higher than the public pension" then MO tax is paid. (I do not know what this means nor did I receive any other retirement income, nor should that even be relevant as I do not receive SS either); and 2) you will need to pay for a tax expert if you want additional help.

[bribrenkinkade]

I think the problem may be as simple as Turbo Tax not having the 2024 Missouri tax forms online yet.  After some additional digging, I found a notice that Missouri 2024 tax code updates are not expected to be available until 1/30/25.

[Barb43]

Thanks for info. I just completed mo return on turbo tax and it did not remove my social security income.  I also looked at draft 2024 on mo website and they are different.  In summary, I would say turbo has not received updated form

[alowe32264]

I have the download version of Turbo Tax and just updated it with the Missouri forms available today.  The MO-A form is calculating my public pension correctly in Section A but then shows $0 in total in Section D - therefore, not deducting it from my taxable income on MO-1040 line 8.  Tried to manually enter the total in Section D but Turbo Tax will not let me.  Appears to be a bug in MO-A.  How do I report that.

[boyinblue1000]

It's definitely a problem with the MO software.  It's not including the public pension deduction.  My gross income was higher in 2023, but it's calculating my taxable income this year as almost $20,000 higher than 2023.  And the public pension deduction is not listed in the final calculation although it tells me I'll get that deduction.

[Barb43]

I have the downloadable version of Deluxe and I was able to right click to override the totals in Section D.  Although I will wait till this bug is fixed, I think if you override the totals anywhere you will not be able to e file but I am not sure about that,  I have the same problem.  The social security deduction is totalling in Section D but it is not adding the private pension deduction that we are entitled to.

[Barb43]

Excuse me, I mean the public pension amount

[CatinaT1]

Here is an FAQ: Why is Form MO-A Section D calculating incorrectly? You can sign up here for updates.

[Dixie6]

I am doing a MO tax return with only public pension and social security income to report. My version lists calculations in both public and private pension sections. In section D, the final only MO exemption is the taxable social security amount found on US form 1040.

[Barb43]

Dixie, I think you have last years form. New form section d is totals for public pension, private pensions and social security...sections a, b and c

[smarty7]

I'm having the same issue with it counting Public Pension in total income for MO.  Always before it's been exempt and with the new change exemption is higher.  Tested on Taxact.com and it's calculating correctly!  Hope this gets fixed soon!!!

[smarty7]

Having the same issue.  Hope it gets fixed soon!