State & Local Tax Impacts of COVID-19 for Missouri – 2021

Thoughtware Alert Published: May 03, 2021 | Updated: Aug 24, 2021
SALT GOV COVID TW - 1

Information current as of July 31, 2021.

COVID-19 has changed 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

  • Missouri issued an emergency temporary regulation for the determination of withholding for work performed at a temporary work location for individual income and corporate income tax purposes. This rule modifies the calculation of withheld taxes by certain employers for employees performing services for wages from a temporary work location. The emergency regulation includes 1) pertinent definitions; 2) criteria to determine affected employers; 3) a requirement that each employer withholding and remitting tax based on the primary work location of its employees under this rule must notify the DOR with certain facts on or before January 31; and 4) examples.
    • Missouri DOR, Emergency & Proposed Reg. §10-2.019, effective January 21 and expires July 19, 2021.
  • Missouri has extended the state individual tax filing and payment deadline for the 2020 tax year to May 17, 2021, to mirror the extensions announced by the IRS. The filing and payment relief is automatic. The relief doesn’t apply to estimated tax payments due on April 15, 2021. Individuals who file and pay by May 17, 2021, will avoid late filing and payment penalties and interest. Individuals may still ask for an extension of time to file until October 15, 2021.
    • Governor’s Press Release, March 19, 2021.
  • Missouri has adopted a permanent rule for withholding and remitting income tax from wages for work performed from a temporary location due to the COVID-19 pandemic. It allows certain employers to elect to withhold and remit tax on the basis of a primary work location when employees were working from a temporary work location. The new rule is substantially similar to an emergency rule in effect from January 21, 2021, to July 19, 2021. 
    • Missouri DOR, Reg. §12 CSR 10-2.019, effective July 30, 2021.
  • Missouri legislation provides some additional COVID-19 relief. Current law allows a taxpayer to deduct from Missouri adjusted gross income (AGI) a portion of federal income taxes paid, exempting federal income tax credits received for the 2020 tax year under the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) when determining the amount of tax paid. Effective June 30, 2021, the exemption also extends to federal income tax credits received for the 2020 tax year under the supplemental CARES Act, as well as any other federal COVID-19-related income tax credits. Current law requires a taxpayer who itemizes deductions to include any federal income tax refund amounts in Missouri AGI if the taxpayer previously claimed a state deduction for federal income tax paid. Effective June 30, 2021, any federal income tax refund attributable to COVID-19-related tax credits in the supplemental CARES Act, as well as any other federal COVID-19-related income tax credits, need not be included in a taxpayer’s Missouri AGI.
    • Missouri S.B. 153, Laws 2021, effective August 28, 2021.

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

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