KCPERS office will be closed on Monday, January 20th in observance of Martin Luther King Day.
As the recipient of a public pension, you may qualify for the Missouri public pension exemption. This exemption allows you to exclude a portion of your pension and/or Social Security Income from your gross taxable income for your Missouri taxes. To qualify for the exemption, your adjusted gross income must fall within certain limits.
-Up to $85,000 for single taxpayers
-Up to $100,000 for married taxpayers
The exemption will be calculated as the amount of your taxable pension, limited to the maximum exemption amount for each taxpayer, and then reduced by the amount of your nontaxable social security benefit, if any. If you exceed the limitations listed above, you may still qualify for a partial exemption.
To see if you qualify for any or all of the exemption, you will need to file Form MO-1040 or MO-1040P. You will need to complete the worksheet in Part 3 of Form MO-A to file with your MO-1040.
KCPERS recommends that you contact the Missouri Department of Revenue or a qualified tax professional for information or questions regarding your eligibility to claim the public pension exemption.
Qualified Health Insurance Premiums
Missouri also allows a subtraction from federal adjusted gross income for qualified health insurance premiums. The subtraction is taken on line 12 of part 1 of Form MO-A. To determine if you qualify for a subtraction, the Missouri Department of Revenue supplies a worksheet for line 12 which can be found in the instructions to form MO-1040.
IRS Treatment of Insurance Premiums for Retired Public Safety Officers
Public and private sector defined benefit pension fund payments added $224.3 billion in tax revenue to the U.S. economy in 2022, according to the National Institute on Retirement Security. Research Quantifies the Broad Economic Impact of Pension Payments | PLANSPONSOR
President Joe Biden has signed the Social Security Fairness Act, repealing the Windfall Elimination Provision and Government Pension Offset, ensuring retired law enforcement officers receive their full earned Social Security benefits.
The Social Security Fairness Act, aiming to repeal the Windfall Elimination Provision and Government Pension Offset, awaits President Biden's signature after passing both the House and Senate.
KCPERS office will be closed on Monday, January 20th in observance of Martin Luther King Day.