Missouri state tax subtraction

[lshay01]

Can someone please tell me what calculation or federal data Turbo Tax uses for the Railroad Retirement subtraction on the MO-A form, line 11 D? The number being reported doesn't match any number that I have input. 

[DawnC]

Railroad Retirement Benefits Administered by the Railroad Retirement Board, such as all Tier I and Tier II benefits and any railroad retirement sick pay, disability, and unemployment benefits, included in federal adjusted gross income (Form MO-1040, Line 1), are exempt from state taxation.   All of this income that was taxable on your federal return is eligible to be subtracted from your Missouri AGI to arrive at Missouri taxable income.    When you look at your federal Form 1040, Lines 5 (pensions) and 6 (SS), you will see the income on 5a or 6a and then you will see the federal taxable portion on 5b or 6b.   

Depending on a variety of factors, you may be able to deduct up to 100% of your public retirement benefits received from PSRS or PEERS on your Missouri income tax return.

The total public pension exemption is limited to the maximum Social Security benefit of each spouse.

In order to be eligible for the full deduction, your Missouri adjusted gross income must fall within certain income limitations.  If your income exceeds the limitation, you may qualify for a partial exemption. The amount of your exemption must be reduced by the amount that your income exceeds the limitation.  The limitation is based on your filing status and income (less taxable social security benefits) as listed below:

• $100,000 – Married, filing combined
• $85,000 – Married, filing separate
• $85,000 – Single, Head of Household, or Qualifying Widow(er)

Missouri also offers a similar exemption for private pensions and social security benefits; however the qualifications for both of these exemptions vary from the public pension exemption.

Eligibility is dependent on a variety of factors for any of the exemptions discussed above. Visit http://dor.mo.gov/pdf/pension.pdf for more information regarding eligibility. Or you may contact the Missouri Department of Revenue at (573) 751-3505, email income@dor.mo.gov or consult a tax professional for more information.

[lshay01]

I am going to try this again. Per the documentation that you provided Missouri excludes all Tier I and Tier II Railroad Retirement.

I calculated an exemption of $84,262 and per TurboTax the amount is $65,438. 

I used Federal 1040 line 5B (minus a private pension amount) + Federal 1040 line 6b for my calculation. What does Turbo tax use?????

Please help! I have called Turbo Tax for help twice but have not gotten an answer that resolves my issue.

Thank you

[BillM223]

What is the amount on 1040, line 6a?

What is the amount on 1040, line 6b?

The exemption on the MO return will never be a number that you inputted, because the exemption is only on taxable benefits, and SS and RRB benefits are never 100% taxable on the 1040.

Please look at the Social Sec worksheet and see how the RRB got limited (i.e., how much was taxable). Now compare this to what is the exemption on the MO return.