Missouri HB2811 allows a tax deduction for the first $25,000 of bonus pay received by employees.
Missouri HB2811 introduces a tax deduction for the first $25,000 of bonus pay received by employees, effective from January 1, 2027. Bonus pay is defined as nonrecurring compensation that does not increase the employee's base rate of pay and includes no commitment for payment in a subsequent year. This deduction applies to all income received by employees as bonus pay from their employers, including supplemental wages as defined under federal regulations, excluding tips and overtime wages. The $25,000 threshold includes the combined total of bonus payments from all employment for the tax year.
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