A new house bill would prevent Missourians from being taxed on COVID-19 stimulus checks.

Proposed by Rep. Cody Smith, R-Carthage, chairperson of the House Budget Committee, House Bill 991 will exclude federal stimulus checks from income taxes.

The Missouri House passed similar legislation last year that waived state income tax from checks received in April.

But after the approval of a second stimulus check for COVID-19 economic relief in December, the proposed bill would exempt these payments, and any future payments, from taxation. The $600 stimulus checks were part of a $900 billion national package, and individuals who didn’t get the second payment can still claim it when they file their 2020 taxes.

“This bill seeks to kind of look forward to deal with this issue related around the COVID-19 pandemic, so on only the stimulus check that has been received at the end of last calendar year, but this presumed next one and any other more going forward,” Smith said Wednesday during a House Ways and Means Committee hearing.

Zach Wyatt, legislative director at the Missouri Department of Revenue, explained that stimulus checks are considered a credit for federal tax return purposes, and Missouri is one of the states with a federal income tax deduction.

Congress is discussing a $1.9 trillion COVID-19 relief budget, which includes a potential third stimulus check of $1,400 for eligible citizens.

State reporter, fall 2020, studying data journalism and interested in tech and new media. Reach me at adrianosanchezj@missouri.edu, or in the newsroom at 882-5720.

  • State reporter, fall 2020, studying data journalism and interested in tech and new media. Reach me at jax5c@missouri.edu, or in the newsroom at 882-5720.

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