Missouri Working Family Tax Credit

The Missouri Working Family Tax Credit is Missouri's state earned income tax credit, claimed on Form MO-WFTC attached to your Form MO-1040. For tax year 2025, it equals 20 percent of your federal Earned Income Credit.

But read this before you count on a check: the Missouri credit is nonrefundable. It can only reduce the Missouri tax you owe, limited to the smaller of the computed credit or your remaining tax liability, and it will not generate a refund on its own. This is the opposite of the federal EITC, which does pay out as a refund.

So who benefits most? Working households that owe some Missouri income tax, where the credit wipes out part or all of that bill. If you owe little or no state tax, the state credit may do little for you even though your federal credit still pays out.

You must have qualified for and been allowed the federal Earned Income Credit on your federal return. If you did not qualify federally, you do not qualify for the Missouri credit. Investment income cannot exceed $4,400.

Claiming it is a short calculation: multiply your federal EIC by 20 percent, then enter the smaller of that or your remaining Missouri tax on Form MO-1040, Line 44. You must attach your federal return and Federal Schedule EIC, or the claim may be denied.

The federal EITC is the bigger, refundable prize for most families, so claim that first. Free filing help is available through VITA sites; dial 2-1-1 to find one. The MO-WFTC form is available for tax years 2023, 2024, and 2025.