Missouri does not tax Social Security benefits

Missouri is one of the states that does not tax Social Security income at the state level. If you receive Social Security retirement, survivor, or disability benefits and live in Missouri, you will not owe state income tax on those payments.

However, you may still owe federal income tax on your Social Security benefits depending on your total income. The federal government uses a formula based on your "combined income" — which includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits — to determine whether any of your benefits are taxable. This is separate from Missouri's state tax rules.

Understanding the difference between state and federal taxation matters because it affects how much you actually keep from your benefits and whether you need to file a federal tax return.

Key Takeaways

  • Missouri does not tax Social Security benefits at the state level, so you will not owe Missouri state income tax on these payments.
  • The federal government may tax your Social Security benefits if your combined income exceeds certain thresholds, which vary depending on your filing status.
  • Combined income includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits.
  • You may be required to file a federal tax return even if you owe no tax, depending on your total income and filing status.

How federal taxation of Social Security works

The federal government taxes Social Security benefits using a two-tier system based on your combined income. If your combined income falls below a certain threshold, none of your benefits are taxable. If it exceeds the first threshold, up to 50 percent of your benefits may be taxable. If it exceeds a second, higher threshold, up to 85 percent of your benefits may be taxable.

For 2024, the thresholds are $25,000 for single filers and $32,000 for married couples filing jointly. These thresholds have not changed since 1984 and do not adjust for inflation each year. If your combined income is $25,000 or less (or $32,000 or less if married filing jointly), you will not owe federal tax on your Social Security benefits.

Combined income is calculated by taking your adjusted gross income, adding any nontaxable interest (such as interest from municipal bonds), and adding half of your Social Security benefits. This total determines which tax tier applies to you.

What counts toward your combined income

Combined income includes more than just Social Security. It includes wages from work, interest and dividends, rental income, pension payments, and distributions from retirement accounts like IRAs or 401(k)s. It also includes any nontaxable interest you earn, which is why some retirees with seemingly low income still end up owing tax on their benefits.

If you are still working and receiving Social Security before full retirement age, your earnings count toward combined income. This is one reason why people who delay Social Security until later often end up with lower tax bills — they have fewer years of overlapping income sources.

Some income does not count toward combined income. For example, Supplemental Security Income (SSI), veterans benefits, and workers' compensation do not factor into the calculation. If you receive these payments alongside Social Security, they do not push you into a higher tax bracket.

When you must file a federal tax return

You may need to file a federal tax return even if you owe no federal income tax. The IRS has minimum income thresholds that determine whether filing is required. For 2024, a single person age 65 or older must file if their gross income is $15,000 or more. For married couples filing jointly where both are age 65 or older, the threshold is $30,000.

These thresholds include Social Security benefits in the calculation. If your combined income is below the filing threshold for your age and filing status, you are not required to file. However, you may want to file anyway if you had taxes withheld from other income sources, because filing allows you to claim a refund.

The Social Security Administration sends Form SSA-1099 each January showing your benefits for the prior year. You will need this form to complete your federal tax return or to determine whether you must file.

Withholding taxes from your Social Security benefits

You can choose to have federal income tax withheld from your Social Security payments. This is optional, but many people find it helpful to avoid a large tax bill when they file their return.

To request withholding, you complete Form W-4V and submit it to the Social Security Administration. You can choose to have 7, 10, 12, or 22 percent of your benefits withheld each month. You can change your withholding amount at any time by submitting a new Form W-4V.

Withholding does not reduce the amount of tax you owe — it straightforward spreads the payment across the year instead of paying it all at once when you file your return. If you have other income sources and expect to owe tax on your Social Security, withholding can make it easier to manage your cash flow.

Other states that do not tax Social Security

Missouri is one of 38 states that do not tax Social Security benefits. The states that do tax Social Security are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont. Even in those states, the tax treatment varies — some tax only a portion of benefits, and some have income thresholds below which benefits are not taxed.

If you move to another state after retiring, you may want to review that state's tax rules for Social Security. Some retirees factor state tax treatment into decisions about where to live.

What to ask your tax preparer or the IRS

If you are unsure whether your Social Security benefits are taxable, a tax preparer can review your specific situation. You can also contact the IRS directly at 1-800-829-1040 to ask about your tax filing requirements. Have your Social Security statement and any other income documents available when you call.

The IRS also publishes Publication 915, which explains in detail how Social Security benefits are taxed. You can read it from the IRS website or request a printed copy by phone.

Frequently Asked Questions

Will I owe Missouri state tax on my Social Security?

No. Missouri does not tax Social Security benefits at the state level. You will not owe Missouri income tax on your Social Security payments, regardless of how much you receive or what your other income is.

Can I reduce the amount of federal tax I owe on my benefits?

You cannot reduce the tax itself, but you can manage when you pay it. Requesting withholding from your Social Security payments spreads the tax bill across the year. You can also consider delaying Social Security if you are still working, which may lower your combined income in the years before you claim.

What if I move out of Missouri — will my benefits be taxed differently?

Federal taxation rules explore everywhere in the United States, so your Social Security may be taxable federally no matter where you live. However, some other states do tax Social Security benefits, so your state tax situation could change. Check the tax rules of any state you move to.

Do I have to file a tax return if I only receive Social Security?

Only if your combined income exceeds the filing threshold for your age and filing status. For a single person age 65 or older in 2024, you must file if your gross income is $15,000 or more. If your only income is Social Security and it is below that threshold, you are not required to file.

What is the difference between combined income and adjusted gross income?

Adjusted gross income is your income before deductions. Combined income for Social Security tax purposes adds nontaxable interest and half of your Social Security benefits to your adjusted gross income. This combined total is what determines whether your benefits are taxable, not your adjusted gross income alone.