Missouri does not tax Social Security Disability Income

Missouri is one of the states that does not tax Social Security Disability Insurance (SSDI) payments. If SSDI is your only income source, you will not owe Missouri state income tax on those benefits. This applies whether you receive SSDI as a worker with a disability, as a widow or widower, or as a dependent child on someone else's record.

This is a significant difference from federal income tax, where SSDI can be taxable depending on your total income. Missouri's decision to exclude SSDI from state taxation means you keep more of your monthly benefit in the state where you live.

Key Takeaways

  • Missouri does not tax SSDI benefits at the state level, regardless of how much you receive or what other income you have.
  • You still may owe federal income tax on SSDI if your combined income exceeds certain thresholds, even though Missouri taxes nothing.
  • If you work part-time while receiving SSDI, you only report your wages to Missouri, not your disability benefits.
  • Other income you receive — such as interest, pensions, or wages — is still subject to Missouri state income tax as usual.

What counts as income in Missouri if you receive SSDI

When you file a Missouri state tax return, you report only the income that Missouri taxes. SSDI does not appear on that return. However, any other money you receive during the year does count toward your Missouri taxable income.

If you work part-time and earn wages, those wages are taxable in Missouri. If you receive interest from a savings account, dividends from investments, or income from a pension or annuity, all of that is subject to Missouri state income tax. The key point is that SSDI itself is excluded — it is the other income that determines whether you file and what you owe.

The difference between Missouri state tax and federal tax

Missouri's decision to exclude SSDI from state taxation does not affect your federal tax situation. The federal government uses different rules. If your combined income (including SSDI, wages, interest, and other sources) exceeds a certain threshold, the Social Security Administration will count part of your SSDI as taxable at the federal level.

For 2024, those federal thresholds are $25,000 for a single filer and $32,000 for married filing jointly. These numbers include SSDI in the calculation. If you are below these thresholds, no part of your SSDI is federally taxable. If you are above them, up to 85 percent of your benefits may be taxable to the federal government — but still zero percent to Missouri.

This means you could owe federal income tax on SSDI while owing nothing to Missouri. You would report the taxable portion on your federal return (Form 1040) but leave SSDI off your Missouri return entirely.

When you need to file a Missouri state return

You must file a Missouri state return if your income exceeds the filing threshold for your situation. The threshold depends on your age and filing status. For 2024, a single person under 65 must file if they have more than $13,610 in Missouri taxable income. A single person 65 or older must file if they have more than $17,610.

Since SSDI is not counted as Missouri taxable income, you only add up your wages, interest, pensions, and other non-SSDI sources. If those sources alone do not reach the threshold, you do not file a Missouri return — even if your total income including SSDI is much higher.

For example, if you receive $1,500 per month in SSDI and $500 per month in part-time wages, Missouri only counts the $6,000 annual wages. Since that is below the threshold, you would not file a Missouri return, even though your total income is $24,000.

How to report SSDI on your federal return

On your federal return, you will use Form SSA-1099 (Social Security Benefit Statement), which Social Security mails to you each January. This form shows your total SSDI for the year. You then use a worksheet in the federal instructions to determine whether any of it is taxable.

You do not send the SSA-1099 to Missouri. Missouri does not ask about it, and you do not report SSDI on your state return. This is one of the clearest ways Missouri's tax treatment differs from the federal government's.

What to do if you work while receiving SSDI

If you are working and receiving SSDI, Missouri taxes only your wages, not your benefits. You report your W-2 or self-employment income on your Missouri return as usual. The SSDI portion of your income remains untaxed by the state.

Be aware that working while on SSDI can affect your federal benefits through work incentive rules. If your earnings are high enough, Social Security may reduce or suspend your monthly payment. However, that is a federal benefit rule, not a tax rule. Missouri's tax treatment of SSDI does not change based on how much you earn.

Other states and how they compare

Missouri is one of 37 states that do not tax SSDI. A small number of states — including Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont — have chosen to exclude SSDI from state income tax entirely. A few other states tax SSDI but offer exemptions or deductions that reduce the amount owed.

If you move to another state, check that state's rules. Some states that do not tax SSDI may tax other Social Security benefits (such as retirement benefits), so the rules vary. Missouri's blanket exclusion of SSDI is straightforward: none of it is taxed at the state level.

Frequently Asked Questions

If I receive SSDI and have no other income, do I file a Missouri tax return?

No. Since Missouri does not tax SSDI and you have no other income, you have no Missouri taxable income. You do not file a state return. You may still file a federal return if you want to claim a refund, but Missouri requires nothing.

Can Missouri take SSDI to pay back taxes or other debts?

SSDI has strong federal protections against garnishment. Missouri cannot seize SSDI to pay state income taxes, child support, or most other debts. However, the federal government can offset SSDI for federal taxes owed or federal student loan debt. Check with the Social Security Administration if you have questions about your specific situation.

What if I receive both SSDI and SSI (Supplemental Security Income)?

SSI is also not taxed by Missouri. Like SSDI, it does not appear on your state return. If you receive both programs, neither one is subject to Missouri state income tax. Any other income you have is still taxable as usual.

Do I need to report SSDI to Missouri when I file?

No. You do not list SSDI on your Missouri return. You only report income that Missouri taxes — wages, interest, pensions, and similar sources. SSDI is completely excluded from the state tax system.

If I move out of Missouri, will my SSDI become taxable?

It depends on which state you move to. Some states tax SSDI, and some do not. Check the tax rules of your new state. If you move to a state that does tax SSDI, you would need to report it on that state's return, even though Missouri never required you to.