During tax time we want to remind you of ways to lower taxable income through payroll.
- One of the primary ways to lower taxable income is by contributing to a 403/457 plan. These are retirement plans that supplement your pension from PSRS/PEERS. More information on 403/457 plans can be on the Benefits website.You can start or change your 403/457 deductions any time throughout the year. There are limits to the annual contribution based on age.
- Employees participating in the high deductible plan can also increase their HSA contribution throughout the year in order to lower their taxable income. The HSA withholding can be changed by going through SmartBen. There are limits to the annual contribution based on age and filing status.
- Your state taxable income can be reduced by contribution to a 529 college savings plan. A 529 plan is a way to save for college and the withdrawals are not subject to federal income tax if used for qualified higher education expenses. If you choose to set up a 529 plan, please research what plan is best for your needs. If you choose a 529 plan through Missouri’s MOST plan, we can withhold those contributions directly from your payroll. Information on MOST can be found at https://www.missourimost.org. If you set up a MOST plan, there is a payroll deduction form provided by MOST that you can turn into the payroll department to start the withholdings.
Also we want to remind teachers that you may be eligible to deduct up to $250 for unreimbursed educational expenses including PPE on your tax return. Please inquire with your tax preparer or software for details.