The Missouri Department of Revenue has announced corporate income tax year changes, effective for the tax year beginning January 1, 2022, which will be reflected on the 2022 Missouri Corporation Income Tax Return. (Missouri 2022 Corporation Income Tax Year Changes, Missouri Dept. of Rev., 10/14/2022; Important Taxation Changes from 2022 Legislative Session, Missouri Dept. of Rev., 10/14/2022.)
Due dates.
The due date for the 2022 Missouri Corporation Income Tax Return is April 18, 2023, and the extension due date is October 16, 2023. The Adoption Tax Credit, Food Pantry Tax Credit, and Champion for Children Tax Credit are all due April 15, 2023.
Tax credits.
Missouri has updated the following credits:
Adoption Tax Credit (ATC): The current qualification rules are expanded for the ATC beginning with adoptions on or after January 1, 2022. The ATC now applies to any person residing in the state who proceeds in good faith with the adoption of a child, regardless of whether the child is special needs. Priority will be given to ATC applications claiming a credit for special needs children who are residents or wards of residents of Missouri.
Missouri Empowerment Scholarship Tax Credit: A taxpayer who makes a qualifying contribution to an educational assistance organization after August 28, 2021, may claim a credit against the tax. The credit cannot exceed 50% of the tax liability. The tax credit is nonrefundable and cannot be sold, transferred, or assigned. The credit can be carried forward for four years. The tax credit will be certified by the State Treasurer’s Office (STO). The cumulative amount of credit allocated per calendar year must not exceed $50 million (cap adjusted annually by the STO based on urban consumer’s price index up to $75 million). The credit does not sunset.
Trust funds.
The Medal of Honor Trust Fund will be available on the 2022 individual and corporate income tax returns. Donations must be $1 or more for Single, Claimed as a Dependent, Married Filing Separately, Head of Household or Qualifying Widow(er), and $2 or more for Married Filing Combined filing status.
SALT Parity Act.
Beginning with tax years ending on or after December 31, 2022, an S corporation or partnership (pass-through entity) can annually elect to become an affected business entity required to pay the pass-through entity tax.
SALT Parity Act Members Tax Credits: If a partnership or S corporation elects to file a tax return and pay tax at the entity level, a corporation member will be allowed a tax credit on their Missouri Corporation Income Tax Return for their share of the taxes paid. The credit is not refundable and may be carried forward to succeeding tax years until the full credit has been redeemed. To claim this credit, members will complete Form MO-TC and report the credits claimed on their Missouri Corporation Income Tax Return.
2022 legislative session.
The guidance also includes taxation changes from the 2022 legislative session.
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