State & Local Tax Impacts of COVID-19 for Missouri

Thoughtware Alert Published: Dec 11, 2020
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Information current as of December 31, 2020.

The SARS-CoV-2 virus and the incidence of COVID-19 are changing life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to Missouri

  • The state is providing individual income, corporate income and trust income tax relief conforming to the IRS actions: 1) the filing deadline extension moves to July 15 from April 15; 2) the extension for estimated tax payments for the 2020 tax year is similarly extended; 3) interest and penalty waiver for taxpayers who file their return or request an extension by July 15.
    • Governor's News Release, March 21, 2020.
  • Missouri is extending the June 15 second estimated income tax payment deadline for corporations and individuals to July 15, 2020, to mirror the federal guidance. The DOR previously extended the deadline for estimated tax payments due on April 15, 2020, to July 15, 2020.
    • Missouri DOR Notice, April 13, 2020.
  • Missouri is extending the partnership return filing deadline from April 15 to July 15, 2020, to mirror federal guidance.
    • Missouri DOR Notice, April 14, 2020.
  • Missouri legislation excludes the amount of any tax credits reducing a taxpayer's federal tax liability pursuant to the CARES Act for purposes of determining the taxpayer's federal income tax liability allowable as a deduction under state law for tax year 2020. For tax year 2020, the legislation also excludes the amount of a federal income tax refund attributable to a tax credit reducing a taxpayer's federal tax liability pursuant to the CARES Act for purposes of determining the addback adjustment to a taxpayer's federal adjusted gross income for federal income tax refunds received for a prior year that resulted in a Missouri income tax benefit.
    • Missouri S.B. 676, Laws 2020, effective August 28, 2020, and as noted above.
  • Missouri clarified that income tax and withholding apply to wages earned within the state by employees who are working remotely within the state pursuant to the normal rules. The DOR gives no exception for teleworkers who are temporarily working in the state due to COVID-19. Missouri income tax applies to all wages paid to a resident employee, regardless of the state where the wages were earned. A Missouri employer must withhold Missouri income tax (for the difference) if its Missouri resident employee performs services in a state with an income tax rate that is lower than Missouri's tax rate. Missouri requires that income tax be withheld from all wages earned within Missouri by a nonresident employee performing services within the state.
    • Missouri DOR FAQs, October 27, 2020.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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