Missourians could see tax surprise on state returns

1 month 2 weeks 2 days ago Monday, December 31 2018 Dec 31, 2018 Monday, December 31, 2018 3:25:00 PM CST December 31, 2018 in News
By: The Associated Press

JEFFERSON CITY (AP) — Longstanding errors in tax withholding tables that were corrected in September could cost thousands of Missouri taxpayers on their state income tax returns for 2018, according to state officials.

Residents who expect to receive a modest refund on state income taxes could instead owe the state money, and those who do receive a refund could have it reduced by as much as 90 percent, The Columbia Daily Tribune reported .

A Missouri Department of Revenue analysis of 2,000 returns from single filers shows the average refund of $73.70 was replaced by an average payment owed of $64.99. For head-of-household filers — generally single taxpayers with children — the average refund was reduced from $156.07 to $17.61. A Nov. 30 email from House Appropriations staff to lawmakers, provided to the Tribune, said the department had not finished its analysis of how the changes would affect married couples because it "had turned into a nightmare so they didn't have that available yet."

The agency has mentioned the changes only in a news release issued in September that said the problem was caused by a longstanding, inaccurate calculation of the federal tax deduction that were not corrected until September. A department spokeswoman didn't return requests for comment on Monday.

Missouri taxpayers have not been prepared for the likelihood they will owe money, said Democratic state Rep. Kip Kendrick, the ranking minority member of the House Budget Committee. He said the state could consider allowing an extended grace period to make payments without penalty.

Republican House Budget Committee Chairman Scott Fitzpatrick, who leaves to become state treasurer this week, said the change will be an inconvenience for some but "the average person is not going to see a thousand dollar swing."

Fitzpatrick said the department has not widely publicized the change because it is still working to determine which taxpayers will see the biggest change in their liability.

Part of the issue is how the agency interpreted how federal tax changes made in 2017 will affect Missouri revenues. Congress doubled the standard deduction and eliminated the personal exemption. Missouri bases its income taxes on the federal system and allows a personal exemption only if one is available for federal filers.

In the past, taxpayers who minimized the number of dependents generally didn't owe the state money when they filed. The changes in state withholding tables means those people should change their strategy on this year's return.

"Now you should claim those dependents to not owe money," Fitzpatrick said. "For people who didn't change their elections after the tax changes occurred, having no dependents creates a liability."

Fitzpatrick said the tax withholding changes should not impact the state budget because Missouri has enough growth for this year's budget to be balanced.

More News

Grid
List
STURGEON - A judge ordered the city of Sturgeon to reinstate Greg Halderman as its police chief, according to court... More >>
2 hours ago Saturday, February 16 2019 Feb 16, 2019 Saturday, February 16, 2019 5:05:00 PM CST February 16, 2019 in News
COLUMBIA - One person is dead after a crash Saturday afternoon at West Boulevard and Prospect Street. According to... More >>
2 hours ago Saturday, February 16 2019 Feb 16, 2019 Saturday, February 16, 2019 4:29:00 PM CST February 16, 2019 in News
JEFFERSON CITY - Gov. Mike Parson and First Lady Teresa opened up the grounds of the Governor's Mansion on Saturday... More >>
3 hours ago Saturday, February 16 2019 Feb 16, 2019 Saturday, February 16, 2019 4:13:00 PM CST February 16, 2019 in News
COLUMBIA – Money raised at the 14 th annual Rootin’ Tootin’ Chili Cookoff on Saturday afternoon will benefit the Columbia... More >>
3 hours ago Saturday, February 16 2019 Feb 16, 2019 Saturday, February 16, 2019 3:42:00 PM CST February 16, 2019 in News
COLUMBIA - Even with slick sidewalks and snowy roads, runners still showed up for Mizzou's Rockin' Against Multiple Sclerosis 5K... More >>
4 hours ago Saturday, February 16 2019 Feb 16, 2019 Saturday, February 16, 2019 2:54:00 PM CST February 16, 2019 in News
(CNN) -- Sixty-three more people have been infected with salmonella linked to raw turkey products in an outbreak that began... More >>
6 hours ago Saturday, February 16 2019 Feb 16, 2019 Saturday, February 16, 2019 12:27:00 PM CST February 16, 2019 in News
VATICAN CITY (AP) — Pope Francis has defrocked former U.S. Cardinal Theodore McCarrick after Vatican officials found him guilty of... More >>
11 hours ago Saturday, February 16 2019 Feb 16, 2019 Saturday, February 16, 2019 7:25:00 AM CST February 16, 2019 in News
SARCOXIE, Mo. (AP) — The Jasper County prosecutor on Thursday charged a 23-year-old English teacher at Sarcoxie High School with... More >>
21 hours ago Friday, February 15 2019 Feb 15, 2019 Friday, February 15, 2019 9:56:18 PM CST February 15, 2019 in News
COLUMBIA - Battle High School's Girls Wrestling team will make history by competing in the first high school girls state... More >>
22 hours ago Friday, February 15 2019 Feb 15, 2019 Friday, February 15, 2019 8:56:00 PM CST February 15, 2019 in News
COLUMBIA - The first snow system has come to an end and two more are on the way in less... More >>
22 hours ago Friday, February 15 2019 Feb 15, 2019 Friday, February 15, 2019 8:25:00 PM CST February 15, 2019 in Weather
COLUMBIA - Despite the treacherous conditions, some people have no choice but to drive in weather like Friday's. "My... More >>
1 day ago Friday, February 15 2019 Feb 15, 2019 Friday, February 15, 2019 6:48:00 PM CST February 15, 2019 in News
COLUMBIA — The Humane Society of Missouri rescued 21 dogs and 21 cats from a property in western Missouri Friday.... More >>
1 day ago Friday, February 15 2019 Feb 15, 2019 Friday, February 15, 2019 5:42:00 PM CST February 15, 2019 in News
KANSAS CITY, Mo. (AP) — Another winter blast hit Missouri Friday, causing multiple accidents, closing schools and leaving highway experts... More >>
1 day ago Friday, February 15 2019 Feb 15, 2019 Friday, February 15, 2019 4:03:00 PM CST February 15, 2019 in Top Stories
CALLAWAY COUNTY - A traffic stop for following too close led to troopers seizing oxycodone, THC wax, shatter, a product... More >>
1 day ago Friday, February 15 2019 Feb 15, 2019 Friday, February 15, 2019 3:04:00 PM CST February 15, 2019 in News
JEFFERSON CITY — Ameren Missouri said several thousand jobs will be created as part of an effort to upgrade its... More >>
1 day ago Friday, February 15 2019 Feb 15, 2019 Friday, February 15, 2019 1:49:00 PM CST February 15, 2019 in Top Stories
COLUMBIA – The cold weather doesn't just affect road conditions, but fuel economy as well. According to the U.S Department... More >>
1 day ago Friday, February 15 2019 Feb 15, 2019 Friday, February 15, 2019 1:48:00 PM CST February 15, 2019 in News
WASHINGTON (AP) — The Latest on President Donald Trump and border security (all times local): 2:33 p.m. President... More >>
1 day ago Friday, February 15 2019 Feb 15, 2019 Friday, February 15, 2019 1:43:00 PM CST February 15, 2019 in News
CAMDENTON (AP) — The parents of two suburban Kansas City victims of a Lake of the Ozarks boat crash have... More >>
1 day ago Friday, February 15 2019 Feb 15, 2019 Friday, February 15, 2019 1:14:00 PM CST February 15, 2019 in News
Columbia, MO
Broken Clouds 28°
8pm 31°
9pm 30°
10pm 30°
11pm 30°