Bill Filed to Ensure Missourians Cannot Be Taxed on Stimulus Checks

One member of the Missouri General Assembly is proposing legislation that would make sure citizens of the state are not taxed on stimulus checks intended to help people during the COVID-19 pandemic.

Missouri State Representative, House Budget chair, Cody Smith filed HB 991 in the 2021 legislative session with the intent of revising the statutes to make sure that the amount received from the federal economic impact payments cannot be used to determine how much a Missouri citizen is charged by the state’s income tax.

This issue came to light in 2020 when the first stimulus checks arrived in Missourians’ mailboxes and banking accounts in March. Missouri’s legislators quickly realized that due to the state’s tax code, the stimulus checks received from the federal government were considered a tax credit paid from a person’s federal 2020 return, causing one’s state income tax liability to increase.