A new Missouri tax credit may benefit individuals whose primary residence was impacted by a federally declared disaster.
Under Missouri Revised Statutes Section 135.445, eligible Missouri taxpayers may claim a tax credit for insurance deductibles paid on a damaged homestead when the loss resulted from a disaster for which the Governor requested a presidential disaster declaration.
You may qualify for this credit it:
- You are an individual Missouri taxpayer;
- Your homestead (primary residence, whether owned or rented) was damaged due to a qualifying disaster;
- The damage occurred during the 2025 calendar year; and
- You incurred an insurance deductible as part of a paid homeowner’s or renter’s insurance claim issued by a Missouri‑licensed insurance company.
Credit Amount
- The credit is available for tax years beginning on or after January 1, 2025.
- The credit equals the amount of your insurance deductible, up to $5,000 per taxpayer.
- The credit is nonrefundable, meaning it can reduce your Missouri income tax liability to zero but will not generate a refund.
Important Features of the Credit
- The credit may be transferred, sold, or assigned.
- Unused credits may be carried forward for up to 29 subsequent tax years or until fully used, whichever comes first.
- Only one credit per taxpayer per tax year is allowed.
- No new credits will be authorized under this provision after October 15, 2026.
Filing Requirements
To claim the credit, you must file a signed affidavit with your Missouri individual income tax return verifying:
- The address (including county) of the damaged homestead;
- The date the disaster occurred; and
- Documentation showing the insurance deductible was incurred as a result of a paid insurance claim.
Department of Revenue Limitations
The Missouri Department of Revenue is subject to annual redemption limits for this credit. If credits cannot be redeemed in a given tax year due to these limits, they may be carried forward and redeemed in future years.
How We Can Help
If your home was affected by a qualifying disaster and you incurred an insurance deductible, we encourage you to reach out to your advisor. We can help determine eligibility, review documentation and assist with properly claiming or planning for this credit.
Please contact us if you have questions or would like assistance evaluating whether this tax credit applies to your situation.