Tag: Missouri

Posted on by Jan Roberg

How Long Should I Hold My Tax Returns? Forever If You Live in Missouri!

Missouri State Line

Photo by Jimmy Emerson at Flickr.com

Forever!  That’s what I said.  I realize that I’ve made posts about keeping your tax returns before and I’ve said ten years, or even less, but I’ve changed my mind.  Keep your tax returns forever!  Keep your W-2s also.

 

Why am I going all crazy about this?  Because it seems the state of Missouri doesn’t care how old your old tax issues are.  If they think you owe back taxes, there is no statute of limitations.  Let me repeat that—NO STATUTE OF LIMITATIONS!

 

Over the past few months I’ve seen them go after people for back taxes from 2000, 1999, 1995, and my favorite:  1987.  Yes, 1987, that’s 26 years ago.  If you were asked to produce your tax returns from 26 years ago, could you?  I couldn’t.

 

Here’s the thing—if Missouri believes that you have not filed, or that you perhaps filed but still owe, you’re going to need to provide some sort of proof of payment or filing.  If you didn’t keep your tax returns, how can you prove it?

 

Here’s how it works:  Let’s say you filed your federal taxes back in 2000 but for whatever reason your Missouri return was never received by the state.  If you had a state tax liability of $1,000 back then, with penalties and interest added, you’d owe $1902 today  (May 2013).  That’s almost double your tax liability.  But it’s not just the fact that your tax liability doubled—Missouri has no record of the withholding you paid.  It’s quite possible that you already paid all of your taxes with your withholding, but since Missouri doesn’t track that information, they have no record that you already paid those taxes.  Unless you’ve held onto your W2s from back then, you can’t prove you’ve already paid and Missouri is going to want their money.

 

So, I have officially changed my position.  From now on, I say keep all of your tax returns and your W-2s forever.  It’s okay if they are digital copies, but it’s absolutely essential that you retain those copies.  Hopefully, you won’t need them.  But if you do, you’ll be glad you’ve got ‘em.

Posted on by Jan Roberg

State of Missouri Refund Debit Card

 

This year, the state of Missouri is offering you the option of getting your refund from your 2012 Missouri tax return on a refund debit card. You can qualify if you’re getting a refund on your individual MO-1040 or on a Property Tax Credit Claim.

 

To get the debit card, all you have to do is mark the “debit” card box on the refund line of your 2012 Missouri income tax return. How easy is that?

 

You don’t pay any extra charge to get the card. You don’t have to have a bank account. And once you activate your card you’ll have 24 hour access to your cash.

 

You’ll receive your refund card in the mail and you’ll have to activate it by phone or online. You’ll need to create a personal identification number to use it.

 

You’ll be able to use the card anywhere a VISA is accepted.

 

Here’s a video about the debit card and how it works:   Missouri Debit Card Video

 

It’s important to know that having your refund direct deposited into your checking or savings account is still the fastest way to get your refund. But if that’s not an option for you, then this refund card is a really cool alternative.