Tax Credits
“I have been taking advantage of tax credits for Youth In Need for many years. I honestly cannot think of a better way to really help a great agency while minimizing your out-of-pocket expenses and knowing exactly how your tax dollars are being used.”
— Jerry Daniels, Retired President and CEO, Military Aircraft & Missile Systems, The Boeing Company
A Youth In Need Board of Regents Member
Give More, Pay Less: Missouri State Tax Credits
Missouri state tax credits are available for gifts and pledges made by any individual or business owing taxes in the State of Missouri! That means donors can contribute more to Youth In Need because the total out-of-pocket cost of the donation is lower.
Anyone who contributes $100 or more qualifies for state tax credits equal to 50 percent of their donation. The tax credits then can be used to pay Missouri state income tax on top of any charitable deduction that you may receive for the gift.
Example
| Donation | $ | 1,000 | |
| State Tax Credit (50%) | – | $ | 500 |
| State Income Tax Deduction (4.8%) | – | $ | 24 |
| Federal Income Tax Deduction (32%) | – | $ | 160 |
| Total Out-of-Pocket Cost | $ | 316 |
* This example shows cost savings for someone in the 32% federal tax bracket who itemizes on their federal and state tax returns (as opposed to taking the standard deduction). Individuals in lower or higher tax brackets, those who do not itemize, and those subject to the Alternative Minimum Tax would all have slightly different tax savings. A gift of appreciated securities would provide additional tax benefits related to avoiding capital gains. The above example is not intended as tax advice. Tax credits may be applied to tax liability in the year the gift is made or any time over the next five years. Please consult your tax advisor to learn how tax credits benefit you specifically.
If you have any questions, contact Rob Muschany, Chief Development Officer, at 636-757-9348.
