Form Mo-1040b - Missouri Itemized Deductions (Page 2 of 2) in pdf

the information from your Form W-2s for withholding or earned income credit.

Lines 4 and 5 — Railroad Retirement Tax

They only give you a partial deduction.)

Enter in the first box on Line 4 the railroad retirement tax, Tier I and Tier II, which was

withheld from your wages during 1998 (not to exceed $6,725). This amount includes a

Federal Form

1040EZ

1040A

1040

Tier I maximum of $4,241 and Tier II maximum of $2,484. Enter in the second box on Line

4 the Medicare tax you paid in 1998. Enter the total of these two boxes on Line 4. Repeat

Line Number

10 minus 8A

32 minus 37A

49 minus 59A

these steps using your spouse’s information and enter on Line 5.

Note: If a person has both FICA and railroad retirement tax, the maximum deduction

How do I know if I should take the standard deduction or

allowed is the amount withheld as shown on the Form W-2(s) less, either the amount

itemized deduction?

entered on Federal Form 1040, Line 62, or, if only one employer, the amount refunded

If you claimed the standard deduction on your federal return, you must also

by the employer.

claim the standard deduction on your state return. The standard deduction

amount for married filing a combined return is $7,100. But, if you or your

Lines 6 and 7 — Self-employment Tax

spouse marked any of the boxes for 65 or over or blind, please see your federal

Enter in the first box on Line 6 the self-employment tax you paid in 1998 from the

return for your standard deduction amount.

Federal Form 1040, Line 50. Enter in the second box on Line 6, your portion of the

amount of self-employment tax deducted on Federal Form 1040, Line 27. Subtract the

If you itemized on your federal return, you may want to itemize on your state

second box from the first box and enter the difference on Line 6. Repeat these steps

return or take the standard deduction, whichever results in the higher

using your spouse’s information and enter on Line 7.

deduction amount. To figure your itemized deductions, please fill out the

schedule on the back of the return. If you itemize deductions on your

Line 8 — Cultural Contributions

federal return, you must enclose a copy of Federal Form 1040, pages

Enter on Line 8 your approved cultural contributions (literary, musical, scholastic or artistic)

1 and 2, and Schedule A.

to a tax exempt agency or institution that is operated on a not-for-profit basis. Cash contri-

How do I figure my dependent deduction?

butions do not qualify. The cultural contribution must be appraised within one (1) year

of donation by a qualified appraiser who is not related to the donor or donee as defined in

Multiply $1,200 by the total number of dependents you claimed as dependents

Title 26, Internal Revenue Code Section 168(e)(4)(D). Enclose the appraisal to your tax

on your federal return. Do not include yourself or your spouse.

return accompanied by a sworn statement from the donor and donee that indicates accep-

Multiply $1,000 by the total number of people age 65 or older you claimed on

tance, by both, of the fair market value fixed by the appraiser. The sworn statement should

your federal return. If dependents receive state funding or Medicaid they do

also specify the actual date of the donation, the donor’s address and telephone number and

not qualify. Do not include yourself or your spouse.

the address where the composition may be viewed, if applicable. This deduction must meet

all guidelines established by the Department of Revenue. For more information write to the

How do I figure my tax?

Department of Revenue, P.O. Box 2200, Jefferson City, MO 65105-2200.

If your Missouri taxable income is less than $9,000, use the tax table on the

back of the tax form. If the Missouri taxable income is over $9,000, then

Line 9 — Total

subtract the $9,000 from your Missouri taxable income and multiply the

Add Lines 1 through 8. Enter the total on Line 9.

difference by 6%. This figure should be added to $315 and placed on Line 14.

Line 10 — State and Local Income Taxes

Repeat this process for your spouse.

If your federal adjusted gross income from Federal Form 1040, Line 33 is $124,500 or

What are estimated tax payments?

less ($62,250 or less if married filing separate) enter on Line 10 the amount from your

These are payments sent in every three months, or a tax refund from last year

Federal Form 1040, Schedule A, Line 5. However, if your federal adjusted gross income

that was applied to this year’s taxes.

from Federal Form 1040, Line 33 is more than $124,500 ($62,250 if married filing

separate) complete the Worksheet for Line 10.

Why would I want to apply any or all of my refund to next year’s

taxes?

Note: The state and local tax you claim on your federal itemized deductions must be

subtracted from Missouri itemized deductions. Because at the federal level your

You may reduce the amount of tax you may have to pay with next year’s

itemized deductions are reduced if your income is greater than $124,500 ($62,250 if

Missouri return.

married filing combined), you need to complete this worksheet so that you subtract

Can I still make a trust fund contribution even though I have a

only the amount of state and local tax you were allowed on your federal itemized

balance due?

deductions. If you don’t complete the worksheet (and you should complete it) your

Yes, but don’t forget to add the amounts contributed to the amount due and

Missouri itemized deductions will be lower than they should be, and you’ll pay too

provide a separate check.

much tax!

Worksheet, Line 10

Included in the Federal Revenue Reconciliation Act of 1990 was a provision that

Line-by-Line Instructions

required individuals with federal adjusted gross income over certain income thresholds

to reduce the amount allowable for federal itemized deductions by 3% of the excess

for the Missouri

over that threshold (26 USC 68). Certain deductions, such as medical expenses, invest-

ment interest and casualty, theft or wagering losses are not subject to this reduction.

Itemized Deductions

For 1998, the threshold is income over $124,500 ($62,250 if married filing separate).

Line 11 — Earnings Taxes

• You must enclose a copy of your Federal Form 1040 and Federal Schedule A to

Enter on Line 11 the amount of any Kansas City and St. Louis earnings taxes that are

your Missouri return if you itemize your deductions.

included in Line 10.

• You cannot itemize your deductions if you took the standard deduction on your

Line 12 — Net State Income Taxes

federal return.

Subtract Line 11 from Line 10 and enter the result on Line 12 or if you completed the

Line 1 — Federal Itemized Deductions

Worksheet for Line 10, enter the amount from Line 8 of the Worksheet.

Enter the amount from Federal Form 1040, Line 36 on Line 1.

Line 13 — Missouri Itemized Deductions

Lines 2 and 3 — Social Security Tax (FICA)

Subtract Line 12 from Line 9 and enter the result on Line 13, and on front of form, Line

8. If this amount is less than the federal standard deduction (see federal income tax

Enter in the first box on Line 2 the social security tax you paid in 1998, from the social

security tax withheld box on your 1998 Form W-2(s), (not to exceed $4,241). Enter in the

form instructions for amount), then you should enter the standard deduction amount

on front of form, Line 8, unless you were required to itemize your deductions on your

second box on Line 2 the Medicare tax you paid in 1998, from the Medicare tax withheld

box on your 1998 Form W-2(s). Enter the total of these two boxes on Line 2. Repeat these

federal return. If you were required to itemize your deductions on your federal return,

steps using your spouse’s information and enter on Line 3.

you must enter the amount from Line 13 on front of form, Line 8.

Form Mo-1040b - Missouri Itemized Deductions Page 2

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