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Public Pension Exemption

Feb 21, 2023, 07:55 AM by MOSERS
Good morning. How exactly does the public pension exemption work? Do I have to sign up for that or does someone automatically know that I qualify due to the amount I make? I’m confused on how this works. Thanks for any help you can give me.

Your MOSERS pension benefit is subject to normal federal taxes. It is also subject to normal Missouri state income taxes if you are a resident of Missouri. However, because you are a Missouri resident, you may qualify for the Public Pension Exemption as it relates to Missouri state taxes.

In order to be eligible for the full deduction, your Missouri adjusted gross income must fall within certain income limitations. These limitations are not decided by MOSERS, you may contact the Missouri Department of Revenue to see if you qualify or ask your tax professional. If your income exceeds the limitation, you may qualify for a partial exemption. Visit the Missouri Department of Revenue's Public Pension Exemption page or read our Missouri Public Pension Exemption flyer for more information.

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