In the 2018 legislative session, House Bill 2540 was passed and amended
Section 143.171, RSMo, related to the federal tax deduction. Effective for tax year 2019, the federal income tax deduction taxpayers may claim is prorated based on the taxpayer’s federal adjusted gross income. In an attempt to ease implementation of the new withholding formula, the Department of Revenue chose to remove the federal tax deduction from the withholding tax calculation. This change may result in a small increase to the amount withheld from employee’s paychecks. Any withholding in excess of the tax owed will be refunded after the taxpayer files their individual income tax return.
The Department of Revenue encourages all employees to review their W-4 and to make corresponding changes based on their filing status. There are no longer allowances in the Missouri withholding tables. Employees can no longer increase or decrease the amount withheld from their paychecks by claiming allowances that are not consistent with their specific filing situation. If the employee needs additional amounts withheld, they should add the additional amount on line 2 of the W-4.
Visit https://mytax.mo.gov/rptp/portal/home/withholding-calculator to use our online calculator to estimate your withholdings.
Additional information can be located at the following links:
Intro: 2018 has been a blur of developing tax reform guidance since the passage of the Tax Cuts and Jobs Act in December 2017. You're likely aware of the major points outlined in the new tax law, but it can be difficult to keep up with all the evolving details. So we've put together a roundup of seven areas that have been defined further since the tax law passed. [...]
What's New for 2018: You may need a paycheck checkup. Following tax law changes, you should do a paycheck checkup using the IRS’s Withholding Calculator and, if necessary, complete a new W-4 form. The calculator helps determine the right amount of withholding. [...]