MO SB1032

Creates a new $2,400 state income tax deduction for each child born to or adopted by a taxpayer during the tax year, effective January 1, 2027

The deduction applies only in the year of birth or adoption and requires the taxpayer to be entitled to a federal dependency exemption for the child

Taxpayers cannot claim both the new $2,400 deduction and the existing $1,200 dependent deduction for the same child in the same year

The deduction may be claimed by the parent giving birth or adopting, their spouse if filing jointly, or any other taxpayer entitled to the federal dependency exemption for that child

Retains existing deductions: $1,200 per dependent, additional $1,000 for dependents age 65+, and $1,400 for unmarried heads of household or surviving spouses