H.B. 991, which Rep. Cody Smith, R-Carthage, introduced Thursday, would ensure that any federal stimulus payments issued in response to the pandemic will not increase a taxpayer's state tax liability. The bill would apply to the $600-per-person payments issued under the December federal stimulus act and any future payments. Missouri enacted a similar bill last year to provide an exemption for checks under the Coronavirus Aid, Relief and Economic Security Act
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Missouri offers a deduction for federal taxes paid, and the bill would not factor the federal stimulus payments, which are structured as refundable tax credits, into the state's deduction. The deduction applies to those with $125,000 or less in annual state gross income and is capped at $5,000, or $10,000 for joint filers. A qualifying resident's state tax liability could increase if the stimulus payments reduced the resident's federal liability below those thresholds.
Rep. Cody Smith, R-Carthage, introduced the bill.
--Editing by Leah Bennett.
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