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Because Missouri adopts federal adjusted gross income in calculating Missouri taxable income, Missouri allows a net operating loss (NOL) deduction as a carryover or carryback in the same manner as allowed for federal purposes. Missouri - Additions--Net Operating Losses - CCH AnswerConnect cch.com state explanations ad cch.com state explanations ad
NOL provisions have been part of the federal tax code in varying degrees since 1918. [10] When states determine how to treat operating losses, they often use federal taxable income as the starting point. As of 2021, 19 states[11] and the District of Columbia conform to federal NOL provisions.
The Employee Retention Credit is deducted at the federal level. There is no additional deduction on the Missouri return.
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For federal and Missouri purposes, a corporation can use the federal NOL incurred in one tax year to reduce the taxable income in another tax year. The NOL deduction cannot exceed the corporations taxable income (after special deductions).
Missouri law requires a taxpayer to start with the federal itemized deductions reported on Schedule A of the federal return. If a taxpayer itemizes deductions on their federal return, they may itemize deductions for Missouri or take the standard deduction, whichever is to their advantage. Form 4711 - 2021 Missouri Income Tax Reference Guide mo.gov forms mo.gov forms
MO does allow PAL carryovers, so I would urge the taxpayer to file a MO return because the loss is docHub and theres always a chance that in a year with MO passive income MO could disallow the MO loss carryover if no MO return was filed for the loss year, and because there will be no resident state tax return to

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