Non-Resident Tax Offset Credit FAQ
What is the Non-Resident Tax Offset Credit?
The Tax Offset Credit is a procedure used to give dollar for dollar credit to non-resident students who pay Missouri state income tax. The Credit is used to offset the non-resident fee charged to the student account.
What Qualifications Must Be Met?
The student must be a non-resident of the state of Missouri and must pay Missouri state income tax.
What Documentation is Needed to Claim the Credit?
Application for Non-Resident Tax Offset Credit
A copy of the student's Missouri State Income Tax Return (MO-1040 or MO-1040A), including the Non-resident Income Schedule (NRI).
If the student is claimed as a dependent on another person's tax return, a copy of page 1 of that person's Federal 1040 or 1040A form showing the student as a dependent, is required in addition to that person's Missouri State Income Tax Return (MO-1040 or MO-1040A) and Non-resident Income Schedule (NRI).
All W2's, 1099's, or Schedules that show sources of Missouri income for the same year as the tax return.
If when filing Missouri state income taxes, a payment was made to the Missouri Department of Revenue, please submit a copy of the front and back of the canceled check or a copy of your credit card statement.
Copies of the above documentation must be submitted with the application. This information will not be returned. It is the student's responsibility to obtain copies of the appropriate documentation. (The Cashier's Office does not provide copy service.)
How Often Should Documentation Be Submitted?
The student must re-apply for the Non-Resident Tax Offset Credit each year. Taxes from the previous tax year are used to calculate the tax offset for the current academic year. For example; 2010 tax information would be used for Summer Semester 2011, Fall Semester 2011, and Spring Semester 2012. Tax credit not used during the academic year (Summer semester through Spring semester) cannot be carried forward to the next academic year.
How is the Non-Resident Tax Offset Credit Applied to the Student's Account?
The first step is to determine the amount of Missouri state income tax that was due. This is the amount found on the Missouri state income tax form listed as "total tax". (Line 11 on Form MO-1040A or Line 30 on Form MO-1040)
The second step is to determine the amount of non-resident fees charged to the student. If the student is receiving a Non-Resident Scholarship, the amount of the scholarship is subtracted from the non-resident fees charged to the student prior to the application of the Non-Resident Tax Credit.
The Cashier's office then applies the necessary tax offset credit.
Example 1: A student has $500.00 in non-resident fees for Fall 2011 and $1500.00 was paid in Missouri state taxes for tax year 2010. We would then apply $500.00 to offset the Fall 2011 non-resident charges and $1000.00 would be available for Spring 2012. If the student had only $600.00 in non-resident fees for Spring 2012, we would apply the tax credit of $600.00 and the remaining $400.00 would be unavailable for further use since Spring is the last semester of the academic year. (See "How Often Should Documentation Be Submitted" listed above.)
Example 2: A student has $2000.00 in non-resident fees for Fall 2011 and receives a $1500.00 National Access scholarship, which results in the student owing $500.00 in non-resident fees. If $300.00 was paid in Missouri state taxes for tax year 2010, the student would then only owe $200.00 in non-resident fees. There would be no credit left to be applied to Spring 2012.
What If Classes are Dropped or Your Non-Resident Fees are Otherwise Reduced?
The tax-offset credit can only be used to reduce the non-resident fees. If the non-resident fees are reduced, the amount of the tax-offset credit will also be reduced if the offset credit is more than the actual non-resident fees charged.
How Can I Get More Information About the Non Resident Tax Credit?
To find out more information about the Non-Resident Tax Credit, contact the Cashier's Office at (314)516-5151 or click here for more information from the Missouri Department of Higher Education. After opening the PDF file, click the Search button on the toolbar and type the word 'tax'.