MO SB1287

Doubles the maximum state income tax deduction for private pension income from $6,000 to $12,000 per taxpayer, effective for tax years beginning January 1, 2027

Increases income eligibility thresholds for the full deduction starting in 2027: single/head of household filers from $25,000 to $50,000; married filing jointly from $32,000 to $64,000; married filing separately from $16,000 to $32,600

Covers privately funded retirement sources including 401(k) plans, deferred compensation plans, Keogh plans, defined pension plan annuities, and traditional IRAs (excludes Roth IRAs)

Maintains the existing $6,000 deduction limit for tax years 2002 through 2026, with the enhanced deduction taking effect in 2027

Phases out the deduction dollar-for-dollar once a taxpayer's Missouri adjusted gross income exceeds the applicable threshold for their filing status