Missouri Tax Withholding Advisory

2019-01-23T12:31:54+00:00January 9th, 2019|Categories: From the Capitol|0 Comments

In September 2018, the Missouri Department of Revenue issued a media advisory regarding state income tax withholding.  As a result of changes to federal taxes, it was revealed that an unexpected decrease in the withholding amount was calculated due to a “longstanding inaccurate calculation of the federal tax deduction” that had previously gone undetected.

While certain employees will see an overall reduction in their tax liability, the amount withheld from their paycheck will not correlate to their tax returns from past years regarding state taxes.

For many Missourians, where in years past they would have received a modest refund, there is the possibility that they will have to pay additional taxes to meet their balance owed.  For those who have typically gotten a refund from taxes paid, there could be a major reduction in the amount of that refund.

Some employers have corrected their withholding tables, but it is possible that MSTA members could be affected by this withholding error from the state.  If you have questions or concerns, please review your previous pay stubs and visit the Missouri Department of Revenue web page’s tax calculator or contact your tax preparer to see how this will impact your family.

The Department of Revenue has given new guidance to employers that should correct the withholding for tax years going forward.

Here are several links:

Missouri Department of Revenue Withholding Calculator
Department of Revenue
KCTV5
Columbia Daily Tribune