Non-Resident Tax Offset Credit

On July 30, 2017 the Missouri Department of Higher Education (MDHE) rescinded a rule that required institutions to give dollar-for-dollar credit towards nonresident tuition for those non-resident students who pay Missouri income tax. Institutions now have the discretion as to how they administer the credit. Due to the longstanding practice under the previous MDHE rule, MU has decided to continue offering the credit for any student admitted and enrolled Fall 2018 or prior. Students must continuously be enrolled in order to be eligible for the credit. In addition, starting Fall 2018, MU will be offering a Border State Scholarship in the amount of $2500 for those non-resident students who meet the minimum qualifications

Required Documentation

In order to claim the tax offset credit, a student (or person claiming the student as a dependent) will need to submit the following documentation:

  • Completed and notarized Non-Resident Tax Offset Application.
  • A copy of the applicant’s Missouri state income tax return (MO-1040), including the Non-resident Income Schedule (NRI).
  • All W2s, 1099s, or schedules that show sources of Missouri income for the same year as the tax return.
  • A person claiming a student as a dependent will also need to provide a copy of page 1 of their Federal 1040 form showing the student as a dependent.
  • Applicants making payment to the Missouri Department of Revenue when filing Missouri state income taxes must submit a copy of the front and back of the canceled check.

You must reapply for the non-resident tax offset credit each year.