Reps. Michael O’Donnell and David Evans
Taxing social security benefits could be eliminated in Missouri. The Missouri House Special Committee on Tax Reform is considering two bills that would do just that.
House Bill 662 is sponsored by State Rep. David Evans, R-West Plains, and House Bill 156, is sponsored by Rep. Michael O’Donnell R-St. Louis County.
Both aim to follow the trend of other U.S. states exempting social security benefits from taxation.
“Missouri is one of only 11 states that currently taxes its residents’ social security benefits,” according to Rep. O’Donnell. “Thirty-nine states, including the District of Columbia, either have no income tax or they do not tax social security benefits in their calculations for taxable income. In 2021, North Dakota became the 38th state to not tax social security and in 2022 Colorado became the 39th state to not tax social security. The trend is to exempt these social security benefits from taxation in the states.”
He said that Missouri allows 100% social security exemption as long as the taxpayer is 62 years or older and makes under $85,000, as a single filer, or $100,000 when filing jointly. His recommendation is that Missouri eliminate taxes for social security benefits as it would provide stability to the state’s economy.
“This bill specifically was designed to also do both social security disability income as well as retirement income equally, just abolish any taxes on that type of income state taxes,” adds Rep. Evans. “Again, why do we not should be the question of the day.”
State Rep. Deb Lavender, D-St. Louis County, questioned how the most vulnerable benefit if Missouri gives tax benefits to people who make under $85,000 a year. She said she’d rather see part of the $318 million price-tag be used to cut taxes on food that all Missourians buy.
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