Pensions Taxed In Missouri ?

[Billfo]

Still working in Nebraska. Public owned electric utility (some kind of Government status). We bought a retiremnet home on Table Rock Lake in Missouri in 2010. Planning in retiring in Missouri (1-2 yrs). My questionis for those that retired from another state & MOVED TO MISSOURI.

I have reciently discovered that there maybe some tax benifits moving to Missouri. ARE pensions taxed ? The Mo website is a bit confusing.

Thanks for any help.

Bill

[Gavin]

The maximum Missouri pension exemption is $35,234 per person but the exemption is reduced (dollar for dollar) for any income in excess of the Missouri AGI limitation ($100,000 for married, $85,000 for single). Does that help? Look at form MO-A if you want to see how its calculated.

[Billfo]

Gavin, Thanks for the reply. Dont know if you are retired or not but if you can assist further I'd apprechiate it.

Your initial reply is what I read as well. I am still trying to verify TWO things that I can not nail down from the Mo. website....

1) If pension is earned in Nebraska & then we retire in Missouri- Does the exemption come into play at tax time- right ? Nebraska still taxes me before they give me my pesion check. (My assumption is that all states pay out pension checks AFTER taxes.

2) Are ALL pensions honored under the Missouri exemptions or only pensions EARNED in Missouri ?

I know your probably not a Missouri tax profesional (maybe you are).... But so far your my only contact .. Thanks.

[Gavin]

Think you have the right questions Bill and you need to confirm this with your CPA. The way Missouri calculates its tax, you will get the public pension exclusion on form MO-A regardless of source (within the limits). You can also get a tax credit for taxes paid to other States on Form MO-CR...Lots of states exclude pensions & taxable social security income...guess that Nebraska is not one of them. Ask your HR folks about where they report the pension income for the retired folks who move out of State.

[Billfo]

Thanks for the information !!

[exiledguide]

We have our taxes done by a CPA and I believe both of our pensions qualify and my brides pension is from the Arkansas Library System so I think you will be OK as long as you don't excede the income limit. But I would still talk to the revenue dept to make sure......

[Billfo]

Life just keeps getting better !!!