Missouri PSRS (Public School Retirement System) Pensions Shouldn't Be Getting Taxed

Forum|Forum|1 year ago
January 31, 2025
1 reply
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I am a retired Missouri teacher whose main source of income is my PSRS retirement. In the past, it wasn't taxed in Missouri as long as you met certain income requirements. As of 2024, it should be untaxed no matter your income. Mine is still showing up as taxable income when using TurboTax for Federal and State returns. Is there a way to manually change this, or should I wait for an update?

TurboTax Deluxe Online

CatinaT1

Here is an FAQ: Why is Form MO-A Section D calculating incorrectly? You can sign up here for updates.

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BoCoMoBMAuthor

Thanks, but it is still disappointing that TurboTax would make people search for this very specific information instead of making it clear on the Missouri TurboTax form that people with pensions should wait to file. A lot of teachers are going to never know that by trusting TurboTax, they paid $1500 or more in extra state taxes.

BillM223

BoCoMoBM: "As of 2024, it should be untaxed no matter your income."

Where do you see this? I don't see this in the MO instructions at all, and the forms still limit this pension income to $46,381 when combined with Social Security.

Even the PSRS/PEERS website says that this income can be taxable.

Where are you getting this PSRS pension should not be taxable? Are you receiving Social Security?

@BoCoMoBM

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