Missouri Social Security exemption

[Ekhaterina]

I am working on a Missouri return, and because I thought Missouri was not taxing Social Security for tax year 2024, I was expecting to see that amount included as an exemption on line 8 of Form MO-1040, which comes from the MO-A, Part 3.  This form should be picking up totals from Sections A, B, and C, and carrying them to MO-1040 line 8.  But, the ProSeries Professional software is only bringing the public pension into that line rather than including Social Security along with it.  So, my return is calculating tax on the Social Security.  This client should actually not owe any tax at all to Missouri, so I was expecting to see a refund of the Missouri tax that was withheld, rather than an amount due.  I do have the boxes for "Age 65 or Older" checked on this return for both husband and wife.  This client, having moved from Missouri to Kansas in 2024, needs to file part-year returns in both states.  Am I missing something, or is the software not working as it should?  I tried doing an update this evening but there were none to pull in.  I think if I try to override this line, I will not be able to e-file.  Help please!

[sjrcpa]

There's a combined limit on pension and SS exclusion. Around $46K.

[Ekhaterina]

Hello SJRCPA,

Is there also a combined limit for this in Kansas that I didn't know about???

[sjrcpa]

I am not in Kansas anymore Toto so I don't know. 😀

MO is the only state I know of that potentially taxes SS.

[Ekhaterina · Accepted solution]

Well, I didn't run into any obstacles on this client's part-year Kansas return when I completed it, like I did on the Missouri return, and the software accepted both the public pension and Social Security exemptions in total for Kansas, so I am assuming the Kansas return must be prepared as it should be.  There are good things about Kansas (all except for this wind that is blowing today)!  Thank you, SJRCPA!

[sjrcpa]

You're welcome.