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Effective July 1, 2008, The Missouri Department of Economic Development approved tax credits totaling $25,000 which will be used to leverage $50,000 in donations for the Outpatient Treatment Services program of The Children’s Place. With this project award, donations made to the Outpatient Treatment Services program for clinical services provided to young children and their families now qualify donors for substantial tax savings.
What is YOP?
YOP is the Missouri Youth Opportunities Program that offers tax credits to offset income tax liability for eligible charitable donations made to organizations that make a positive difference in the economic welfare of the State of Missouri. Individuals and institutions filing taxes in Missouri that make a donation to The Children's Place may be eligible to receive a significant tax credit under Missouri's Youth Opportunity Program*. In return for your donation to The Children's Place, you will receive half of the donation back in form of a Missouri state tax credit. The Children's Place tax credits are available on a first-come, first-serve basis.
How do Credits Differ from Deductions?
A tax credit is a reduction of the taxes you owe the State of Missouri. When you donate to The Children's Place, 50% of any monetary or stock donation made to The Children's Place to support the Outpatient Treatment Services program is eligible for tax credits. These tax benefits flow through both state and federal income tax filings.
YOP Tax Credit Example* |
| Individual cash gift of $1,000 (from a taxpayer in the 35% tax bracket) |
| Cash Gift |
($1,000) |
| Federal Deduction |
350 |
| Missouri Tax Deduction |
60 |
| YOP Credit (50% of gift) |
500 |
| Reduced state tax deduction on federal return(*) |
196 |
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$1,000 gift after tax deductions = $286 Out-of-pocket cost |
$5,000 gift after all deductions = $1,430 Out-of-pocket cost |
$10,000 gift after all deductions = $2,860 Out-of-pocket cost |
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| (*) Represents 36% of the $500 YOP Tax Credit. Your deduction for state taxes on your federal return is reduced by $500 because your state tax payment is being reduced by $500. |
Who is Eligible?
Any entity or individual that pays Missouri income tax and files a Schedule A for itemized deductions may receive a tax credit. This includes:
- Individual
- Corporations
- Partnerships
- S Corps
- LLCs
What Forms of Donations are Eligible?
Cash, credit card, or stock given to benefit the Outpatient Treatment Services program of The Children’s Place.
How can the tax credits be used?
Donors have up to one year from the date of the contribution (date on check) to complete the application process, but have up to 5 years to use credits to offset State income tax liability. Credits shall not exceed the donor’s liability in the tax year it is claimed.
How do I become eligible for YOP Tax Credits?
- Make a contribution to the Outpatient Treatment Services program of The Children's Place and specify that it is for YOP.
- Complete the application that accompanies your acknowledgement from The Children's Place and return to us for verification and forwarding to the Missouri Department of Economic Development.
- File the simple MO-TC Form with your State income tax return.
- Necessary information is included with the Missouri Department of Economic development's approval notice.
Your generosity to The Children’s Place can provide you with a generous tax break. For more information about the availability of Missouri YOP tax credits, please email development@tcpkc.org or call Sandy Berger or Joan Goss at 816.363.1898
* Donors should confirm qualification and calculation of actual tax benefits
with their tax advisors.
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