Form Mo-A - Information To Complete Form Mo-A - Mo Department Of Revenue (Page 2 of 5) in pdf

exempt income. You may propose an alternative

difference in basis can be claimed for

member when determining the indi-

method provided that it properly reflects the

any property obtained after December

vidual income tax rate for either the

amount of related expenses.

31, 1972. If your basis for Missouri

service member or the service member’s

purposes is less than the basis for

spouse on a combined return.

8 — S

INE

TATE

NCOME

EFUND

federal income tax purposes, no adjust-

Nonresident active duty military

Enter the amount of any state income tax refund

ment is required.

servicemembers who are required to file

included in your federal adjusted gross income

a 2008 Missouri return may subtract the

3. Accumulation Distribution. If during

on Form MO-1040, Line 1 (from Federal Form

military income received from their

2008, you received a distribution as

1040, Line 10). Attach a copy of Federal Form

federal adjusted gross income.

beneficiary of a trust that was made

1040 (pages 1 and 2).

from accumulated earnings of prior

Attach a copy of the Form W-2 report-

years and you filed Federal Form 4970,

ing your military income.

9 — P

, F

INE

ARTNERSHIP

IDUCIARY

the amount may be excluded from

8. Combat Pay Included in Federal

S C

, R

Missouri income to the extent that it

ORPORATION

AILROAD

Adjusted Gross Income Earned by

was reported in your federal adjusted

, O

Military Personnel with a Missouri

ETIREMENT

ENEFITS

THER

gross income.

Home of Record. The IRS allows

Enter negative adjustments (subtractions),

4. Capital Gain Exclusion on Sale of Low

enlisted members, warrant officers and

reported from partnerships, fiduciaries, and S

Income Housing. If during 2008, you

commissioned warrant officers to

corporations. The partnership, fiduciary, and S

sold a federally subsidized (HUD) low

exclude their military pay received

corporation must notify you of the amount of

income housing project to a nonprofit or

while serving in a combat zone, or

any such adjustment (subtraction) to which

governmental organization, and at least

while hospitalized as a result of injuries

you are entitled. Check the boxes applicable

40 percent of the units are occupied by

incurred while serving in a combat

on Line 9 and attach a copy of the notification

persons or families having incomes of

zone. The exclusion of combat pay

received. Failure to attach a copy of the noti-

60 percent or less of the median

received by a commissioned officer

fication furnished to you will result in the

income, you may exclude 25 percent of

(other than a commissioned warrant

disallowance of the modification.

the capital gain from Missouri tax.

officer) is limited to the highest rate of

Railroad Retirement Benefits Administered by

However, the buyer of the property must

enlisted pay. Subtract all military

the Railroad Retirement Board, such as all

agree to preserve or increase the low

income received while serving in a

Tier I and Tier II benefits and any railroad

income occupancy of the project. To

combat zone, which is included in

retirement sick pay, disability, and unemploy-

use this exclusion, enter as “other” 25

Federal Adjusted Gross Income (FAGI)

ment benefits, included in federal adjusted

percent of the capital gain reported on

and is not otherwise excluded. In most

gross income (Form MO-1040, Line 1), are

your Federal Form 1040. Attach a copy

cases combat pay is not included in

exempt from state taxation.

of your Federal Form 1040 (pages 1 and

Box 1, Wages, of Form W-2 and

If you have other sources of negative adjust-

2), Federal Form 4797, and an explana-

therefore is not included in FAGI.

ments, indicate the source on the line pro-

tion.

However if Box 1 includes combat

vided. Other sources of negative adjustments

pay, the portion consisting of combat

5. Family Development Account. A

may be:

pay may be taken as a subtraction for

family development account holder

1. Contributions into a Missouri Individual

Missouri purposes.

may subtract the amount of annual

Medical Account (IMA). Contributions

EXAMPLE 1: A resident of Missouri, is

deposits made to the account (not to

that were made by your employer into

an enlisted member of the military.

exceed $2,000). Approved withdrawals

an Individual Medical Account (IMA)

He enters a combat zone in July and is

from the family development account

and used to pay your health care

there through December. He earns

are also exempt from state tax. Interest

expenses are exempt from Missouri

$12,000 January through June, and

earned by a family development

income tax. The interest income earned

earns $20,000 July through December.

account is exempt from state taxation

Box 1 of his Form W-2 should only

on the IMA account is also exempt from

and may be subtracted from an account

indicate the $12,000 he received prior to

Missouri income tax. The IMA contribu-

holder’s federal adjusted gross income.

entering the combat zone. He is not

tion is identified in Box 14 of your Form

Any money withdrawn for an unap-

entitled to a subtraction, as his combat

W-2, Wage and Tax Statement. Reduce

proved use is subject to tax. Attach

pay is not included in his FAGI.

the amount of contributions by the

proper certification and a copy of your

EXAMPLE 2: A resident of Missouri, is a

amount of medical and dental expenses

Form 1099.

high-ranking commissioned officer. He

deducted on Federal Form 1040, Sche-

6. Federally Taxable—Missouri Exempt

enters a combat zone in July and is there

dule A, Line 4, but paid for by the IMA

Obligations. The amount of any bond

through December. He earns $50,000

and included in Missouri itemized

issued by the Missouri Higher Education

January through June, and earns $70,000

deductions.

Loan Authority (MOHELA) including

July through December. The IRS limits

2. Additional Capital Gain Deduction Due

interest or proceeds resulting from the

his exclusion to $40,000, causing Box 1

to Difference in Basis. If during the

sale of the bond is exempt from

of his Form W-2 to indicate $80,000.

taxable year you realized a gain from

Missouri tax. If the amount is included

He is entitled to a subtraction of

the sale of property or other capital

in federal adjusted gross income, the

$30,000, which represents the portion of

assets that had a higher tax basis for

amount can be subtracted for Missouri

Box 1 of Form W-2 attributable to

Missouri tax purposes than for federal

tax purposes pursuant to Section

combat pay that is included in his FAGI.

tax purposes, you may exclude the gain

173.440, RSMo.

9. Net Operating Loss: Any amount of net

or the difference in the basis of the

7. Military Income of Nonresident

operating loss taken against federal

property so disposed, whichever is

Military Personnel. Enter the amount of

taxable income but disallowed for Mis-

smaller. If the gain was considered a

any military income received by nonres-

souri income tax purposes after June 18,

long-term capital gain for federal

ident military personnel stationed in

2002, (when choosing the five year

income tax purposes, the exclusion is

Missouri. The Civil Relief Act, H.R.

option at the federal level) may be carried

limited to the gain or 50 percent of the

100, prohibits states from including the

difference, whichever is smaller. No

Instructions continued on page 33

military income of a nonresident service

FORM MO-NFT, No Franchise Tax Due

Form MO-NFT is only for corporations. Complete Form MO-NFT and attach to your individual income tax return (Form MO-1040) if your corpora-

tion's assets or apportioned assets are $1,000,000 or less and no corporation franchise tax is due. See "To Obtain Forms" on Page 3 for information on

how to obtain Form MO-NFT. Note: If a corporation fails or neglects to file a Missouri corporation franchise tax report pursuant to Chapter 147, the

Director of Revenue will notify the secretary of state to begin administrative dissolution proceedings.

Form Mo-A - Information To Complete Form Mo-A - Mo Department Of Revenue Page 2

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