Children in Crisis (CIC) Tax Credit: the advantage it offers to donors
CASA of Southwest Missouri is one of the organizations named under the state’s Children
in Crisis Tax Credit for the 2010-2012 tax years. Any individual or
corporation is eligible that has income tax due under Chapter 143, RSMO,
excluding taxes withheld under sections 143.191 to 143.265, RSM), and that
makes a contribution of $100 or more. This credit may be applied to the
taxpayer’s individual income tax, or corporation income tax, or any other tax
incurred under the provisions of Chapter 143, RSMO, excluding state withholding
tax. Many people do not understand the full advantage that tax credits
provide. For example:
Charitable Contribution WITHOUT Children in Crisis Tax Credit
Charitable Contribution: $1000
Contribution Deductions
Federal @ 28% ($280)
State @ 6% ($60)
Total Savings ($340)
Total ‘Cost’ of Contribution $660
Charitable Contribution WITH Children in Crisis Tax Credit, Such
as CASA of Southwest Missouri:
Charitable Contribution: $1000
Contribution Deductions
Federal @ 28% ($280)
State @ 6% ($60)
Tax Credits ($500)
Total Savings ($840)
Total ‘cost’ of contribution $160
(from projections made by Bank of America at the 2008 Charitable Giving seminar in Springfield, Missouri)
How the
Program Works
Beginning January 1, 2006, a credit may be claimed in an amount equal to fifty percent of a contribution made to a
qualified agency. The minimum credit issued will not be less than fifty dollars.
Eligible Use of Tax Credit
Any amount of tax credit which exceeds the tax due or which is applied
for and otherwise eligible for issuance but not issued, may be carried forward
to the next four subsequent taxable years. The CIC credit is
nonrefundable.
Procedures
to Claim the Credit
To claim the Children in Crisis credit, the taxpayer must attach a copy of the contribution verification provided by the
qualifying agency to the taxpayer’s return along with a completed Form MO-TC. The cumulative amount of tax credits redeemed
shall not exceed the unclaimed portion of the resident adoption category allocation. In the event the total amount of
tax credits claimed exceeds the amount available, the amount redeemed will be apportioned equally to all eligible taxpayers
claiming the credit.
Filing Period
All claimants that claim the Children in Crisis credit must file a return between July 1 through April 15 of the fiscal year.
Forms to Use
Further information available by contacting
Missouri Department of Revenue, Taxation Division:
- Phone:
573-522-6864 (for individual tax)
- Phone:
573-751-4541 (for business tax)