Does Missouri follow the federal no-tax-on-tips and overtime deductions?
DOES NOT CONFORM
Missouri does not follow the federal deductions for state income tax. You can still claim the tips and overtime deductions on your federal return (Schedule 1-A) — they simply do not reduce your Missouri state tax. Do not assume your state return treats this income the way your federal return does.
Verified against the official state source below — last verified October 26, 2026
| Deduction | Missouri position |
|---|---|
| Federal tips deduction (IRC §224) | Does not conform |
| Federal overtime deduction (IRC §225) | Does not conform |
What the state itself says
"These deductions apply only at the federal level and cannot be claimed on the Missouri individual income tax return"
- Official source
- Missouri Department of Revenue, "Individual Income Tax Year Changes"
- Tax years covered
- 2025 Missouri returns.
Missouri starts from federal AGI and allows only state-authorized adjustments; DOR gives the reason expressly — Missouri statutes "do not provide corresponding provisions for these deductions." Explicit OBBBA guidance covering tips, overtime, car-loan interest and the senior deduction together. (Bills to create a Missouri subtraction, e.g., HB 860 / SB 1241, were only introduced.)
Your federal deduction is separate
Whatever your state does, the federal deductions run on their own rules: check your W-2 codes with the W-2 Code Checker, estimate with the Tips Calculator and Overtime Calculator, and see the glossary for any term. All state positions: the state-by-state index.
State position verified October 26, 2026 from the official source above. State guidance changes; confirm on the source before filing. This page is general information, not tax advice.