HB 823 -- Property Tax Credit, Earned Income Tax Credit, and
Deduction for Social Security

Sponsor:  Zweifel

Beginning January 1, 2007, this bill changes the qualifications
for and the amount of credit allowed under the senior
citizen/disabled person property tax credit, commonly known as
circuit breaker.  The bill also:

(1)  Increases from $2,000 to $4,000 the amount of the exemption
allowed for a married couple;

(2)  Increases from $25,000 to $30,000 the maximum income allowed
to claim the credit and indexes the new amount by the increase in
the federal Consumer Price Index in increments of $100; and

(3)  Increases from $13,000 to $18,000 the minimum base and
indexes the new amount by the increase in the federal Consumer
Price Index in increments of $100.

The bill authorizes a state individual income tax credit equal to
20% of any earned income tax credit claimed by the taxpayer on
his or her federal income tax return.  The tax credit is not
transferable or refundable and cannot be carried forward.

An income tax deduction is authorized for any Social Security
benefits or Social Security disability benefits received by
married taxpayers who are 65 years of age or older with an annual
combined income of $50,000 or less, or a single taxpayer who is
65 years of age or older with an annual income of $40,000 or less
if the benefits are included in the taxpayer's federal adjusted
gross income.

The provisions of the bill will expire on December 31 six years
from the effective date.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am