Missouri SB1241 allows an income tax deduction for tipped income.
Missouri SB1241 amends the state's income tax code to allow a deduction for tipped income. Specifically, beginning in tax year 2026, taxpayers can deduct up to $25,000 of tipped income from their Missouri adjusted gross income. Tipped income is defined as any cash gratuity received by an individual in the course of employment in an occupation that customarily receives tips. This deduction applies to all taxpayers who earn tipped income, potentially reducing their state tax liability.
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