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SB 1063

SB 1063 - Current law authorizes an income tax deduction for retirement benefits received by a taxpayer as a result of service in the Armed Forces of the United States. This act also allows for the deduction of any survivor benefits derived from such service. This act is identical to a provision in SS/SCS/SB 974 (2026) and SS/SB 59 (2025), and is similar to a provision in HCS/SB 994 (2026). JOSH NORBERG

2026 Regular Session Introduced by Jill Carter

SB 1063 establishes an income tax deduction in Missouri for qualifying survivor benefits, reducing taxes on families receiving military or federal survivor annuities.

Hearing Conducted S Veterans and Military Affairs Committee
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WeVote Research Nonpartisan
Bill Summary · SB 1063

Legislative bill overview

SB 1063 would create an income tax deduction for certain survivor benefits received by Missouri residents. The bill allows taxpayers to exclude specific survivor benefit payments from their state taxable income. This primarily affects recipients of military survivor benefits, federal survivor annuities, and similar programs.

Why is this important

Survivor benefits are often the primary income source for families who have lost a breadwinner, and reducing their tax burden directly increases financial security for vulnerable households. The deduction could provide meaningful relief to military families and federal employees' dependents while potentially reducing state tax revenue. This mirrors similar provisions in other states aimed at reducing the tax burden on families already facing significant financial hardship.

Potential points of contention

  • Revenue impact: The deduction will reduce Missouri's income tax collection; the fiscal cost depends on how many Missourians receive qualifying survivor benefits and their income levels
  • Definition of "certain" benefits: The bill's effectiveness depends heavily on which specific survivor benefits qualify—military survivors, federal civil service survivors, and private pension survivors may be treated differently
  • Horizontal equity concerns: This creates different tax treatment for families with similar incomes based on the source of their survivor benefits, potentially favoring some groups over others

Compiled from official sources — confirm details with the bill’s official record.

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