Social Security Administration

Missouri will continue to take millions of dollars in the next year in Social Security benefits and use the money to help pay for foster care. The result is that kids who are orphaned or have disabilities are responsible for paying toward the cost of their care in state custody, while foster kids who are ineligible for those benefits pay nothing.

Missouri’s child welfare agency took at least $6.1 million in foster kids’ benefits last year to reimburse itself for the cost of providing care. It’s a longstanding practice that has come under increased scrutiny across the country.

The bipartisan bill, exempting Social Security benefits and public pension payments from income tax, would reduce state general revenue by an estimated $309 million annually.

Under current Missouri law, there is an income cap where single tax filers who make more than $85,000 and joint filers who make more than $100,000 would owe some state income tax on Social Security. The bill removes that cap, a change that's estimated to cost the state $318 million annually.

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