HB 1661 -- Income Tax: Federal Income Tax Deduction Sponsor: Cunningham This bill allows full deductibility of federal income taxes paid by corporations and individuals for state income tax purposes. Under current law, corporations are allowed to deduct 50% of federal income taxes paid, and individuals are limited to a deduction of $5,000 per tax year on a single return and $10,000 on a combined return.Copyright (c) Missouri House of Representatives