MO-SHC: Self-Employed Health Insurance Tax Credit (2024)
Missouri · Missouri DOR · Used for tax years 2024
Form MO-SHC calculates Missouri’s 2024 Self-Employed Health Insurance Tax Credit for health insurance premiums included in federal adjusted gross income. It provides short and regular calculation methods, with the resulting credit reported on Form MO-TC.
Who files this form
Form MO-SHC is for self-employed individuals who could not deduct all of their health insurance premiums from their federal adjusted gross income and may qualify for this credit.
To qualify, your tax liability before other credits must be less than $3,000. Use the form’s eligibility check: add Form MO-1040, Lines 33 and 31, plus any lump-sum distribution on Line 34. If the total is $3,000 or more, you do not qualify.
If you file a combined return and both spouses were self-employed and paid health insurance premiums, each spouse must file a separate Form MO-SHC using only their own portion of the referenced federal and Missouri return amounts.
What you'll need
Attach these documents to Form MO-TC with your tax return:
- Completed Form MO-SHC.
- Pages one and two of Federal Form 1040 or Form 1040-SR.
- Federal Schedule C, if applicable.
To calculate the credit, have your Missouri Form MO-1040, the amount of health insurance premiums included in your federal adjusted gross income, and the federal tax tables available. The Regular Method also uses your standard or itemized deductions, Federal Schedule 2, and, when applicable, Federal Schedule 3 and Form 6251.
How to file
- Complete the tax liability eligibility check on Form MO-SHC.
- Calculate the credit using the Short Method or Regular Method. The form says to use the Regular Method if your federal itemized deductions were limited because your federal adjusted gross income exceeded IRS limits.
- Report the credit on the Miscellaneous Income Tax Credits form, Form MO-TC.
- Sign, print your name, and date Form MO-SHC. Attach it and the required federal documents to Form MO-TC with your tax return.
The form lists this mailing address:
Taxation Division
P.O. Box 27
Jefferson City, MO 65105-0027
Common mistakes
- Continuing when you do not qualify. The form says to stop if the tax liability eligibility-check amount is $3,000 or more.
- Including your spouse’s premiums. Do not include health insurance premiums paid by your spouse. If both spouses qualify on a combined return, each must complete a separate Form MO-SHC using only their own portion of the referenced amounts.
- Using the Short Method when the form directs you to the Regular Method. Use the Regular Method if your federal itemized deductions were limited because your federal adjusted gross income exceeded IRS limits.
- Leaving out required attachments. Attach Form MO-SHC, pages one and two of Federal Form 1040 or 1040-SR, and Federal Schedule C, if applicable, to Form MO-TC with your tax return.
Questions people ask
What does this credit cover?
The credit is based on the portion of your federal tax liability caused by including health insurance premiums in your federal adjusted gross income when you could not deduct all of those premiums. The final credit is limited to the smaller of the calculated amount and Missouri tax from Form MO-1040, Line 35.
Can spouses use one Form MO-SHC?
Not if both spouses were self-employed and paid health insurance premiums on a combined return. Each spouse must file a separate form and include only their own portion of the referenced return amounts.
Where do I report the credit?
Report the credit on Form MO-TC, Miscellaneous Income Tax Credits. Use Line 8 of the Short Method or Line 16 of the Regular Method as your credit amount.
Where can I ask questions about the form?
The form lists phone number (573) 751-3220 and email address taxcredit@dor.mo.gov.