PURPOSE: This rule serves as a guideline in the determination of the amount of an individual taxpayer’s allowable personal and dependency exemptions where a short taxable

Missouri Allowable period income tax return is required due to a Deductions change in the taxpayer’s taxable year for federal income tax purposes. $12,500 $12,500

1. (1) If a taxpayer’s taxable year is changed for federal income tax purposes, the Missouri taxable year will automatically be changed. No application for change of accounting period for Missouri income tax purposes will be required. If a short taxable period for federal income tax purposes results from a change in the taxpayer’s accounting period, the taxpayer also shall file a Missouri income tax return

Net for that short taxable period, attaching a copy Amount of one (1) of the items indicating federal per- Included in Missouri mission. Missouri taxable income shall be AGI computed on the basis of the period for which the return is made and in accordance with the rules applicable to the determination of $ 375 $ 6,375 Missouri taxable income generally, except that the amount of allowable personal and $38,250 dependency exemptions shall be reduced to $45,000 the amount which bears the same ratio to the full amount for those exemptions as the number of months in the period bears to twelve

1. (12) months.
2. (2) Example: A resident individual has been filing his/her federal and Missouri income tax returns on the basis of a fiscal year ending September 30. S/he changes to a calendar year basis and files a federal income tax return for the short taxable period October 1 to December 31. S/he is entitled to one (1) personal exemption. His/her federal adjusted gross income (FAGI) for the short taxable period is as follows:

Salary $3,000 United States bond interest $ 40 Savings bank interest $ 60 FAGI $3,100

His/her Missouri taxable income (before federal income tax deduction) is as follows: FAGI $3,100

Less modification for United States bond interest $ (40) Missouri adjusted gross income $3,060 Federal itemized deduction (no federal standard deduction is allowable for short-period returns; no Missouri modifications applicable) $(250)

Personal exemption ($1,200 × 3/12) $(300)

Missouri taxable income (before federal income tax deduction) $2,510

AUTHORITY: section 143.961, RSMo 1986.* Regulation 1.271-2 was originally filed March 8, 1974, effective March 18, 1974.

*Original authority: 143.961, RSMo 1972.