GREAT NEWS – Business Income Deduction Expanded to Include Farm Income (HB 202 & SB 138)

Currently businesses are allowed to subtract from their Federal Adjusted Gross Income a percentage of their business income when determining their Missouri Adjusted Gross Income for Missouri individual income tax purposes. The business income subject to this subtraction is income reported as total combined profit on the IRS Schedule C, Partnership and S Corporations income or loss reported to the IRS on Part II of Schedule E. This provision would add income reported on total combined profit by farmers on the IRS Schedule F and the IRS Form 4835 to the deduction. This subtraction is effective August 28, 2023. (Section 143.022)

For 2023 the Missouri business income tax deduction is 20%