PURPOSE: This rule explains how the combined Missouri adjusted gross income is computed on a combined return for purposes of computing each spouse’s separate income tax liability.

1. (1) In general, if a married couple files a combined Missouri income tax return, the combined Missouri adjusted gross income equals the sum of each spouse’s separate Missouri adjusted gross income. The spouse’s separate Missouri adjusted gross income equals the federal adjusted gross income reportable by the spouse had the spouse filed a separate federal return, as adjusted by the modifications under sections 143.121 and 135.647, RSMo.

2. (2) Examples.

   1. (A) A married couple reported federal adjusted gross income of thirty-two thousand dollars ($32,000) on their joint federal income tax return. On their combined Missouri income tax return, one (1) spouse reported separate federal adjusted gross income of thirty-eight thousand dollars ($38,000), and the other spouse reported separate federal adjusted gross income of negative six thousand dollars ($6,000). The combined Missouri adjusted gross income equals thirty-two thousand dollars ($32,000) (thirtyeight thousand dollars ($38,000) plus negative six thousand dollars ($6,000)).
   2. (B) A married couple reported federal adjusted gross income of thirty-nine thousand dollars ($39,000) on their joint federal income tax return. On their combined Missouri income tax return, one (1) spouse reported separate federal adjusted gross income of thirty-eight thousand dollars ($38,000), and the other spouse reported separate federal adjusted gross income of one thousand dollars ($1,000) and a five thousand dollar ($5,000) subtraction for interest from exempt U.S. government obligations. The combined Missouri adjusted gross income equals thirty-four thousand dollars ($34,000) (thirty-eight thousand dollars ($38,000) plus negative four thousand dollars ($4,000)).
   3. (C) A married couple reported federal adjusted gross income of thirty-nine thousand dollars ($39,000) on their joint federal income tax return. On their combined Missouri income tax return, one (1) spouse reported separate federal adjusted gross income of thirty-eight thousand dollars ($38,000), and the other spouse reported separate federal adjusted gross income of one thousand dollars ($1,000) and a five thousand dollar ($5,000) subtraction for a contribution to a Missouri Savings for Tuition (MOST) account. The combined Missouri adjusted gross income equals thirty-eight thousand dollars ($38,000) (thirty-eight thousand dollars ($38,000) plus zero) because the MOST subtraction is limited to the spouse’s Missouri adjusted gross income.

AUTHORITY: section 143.961, RSMo 2000 and section 135.647, RSMo Supp. 2007.* Original rule filed Dec. 1, 2004, effective July 30, 2005. Amended: Filed Aug. 14, 2007, effective Feb. 29, 2008.

*Original authority: 135.647, RSMo 2007 and 143.961, RSMo 1972.