The season of giving not only provides benefits to the receivers, but also for people who give this year.
The state of Missouri has recently introduced Youth Opportunity Program Tax Credits. YOPs are designed for programs that broaden and strengthen opportunities for positive development and participation in community life for youth. Fund raising through the YOP eligible gifts will directly support low-income families.
So, for those of you who are unaware of what a tax credit is we thought it might be a benefit to explain. A tax credit is actually different from a tax deduction, which works by lowering taxable income, tax credits are a direct reduction of your taxes due. With tax credits, you have a chance to reduce the amount you owe to the state.
Tax credits are Youth Opportunity Tax Credits are a 50% dollar for dollar deduction from your Missouri State Income Tax. Whether it be individual, business, insurance or banking income. That means that whatever you give to the charitable institutional, 50% of your contribution comes off of what you owe the state in taxes.
For instance, if you contribute $10,000 to a charity eligible for the YOP tax credit, $5000 of it will be saved in Missouri State Taxes. Even better, this tax credit is in addition to your Federal Tax Deduction.
There are over 60 youth-based organizations in the state of Missouri who participate in the Youth Opportunity Program. To view a list of these organizations and find out how you can participate, please click here.
For more information on how the YOP tax credit can benefit you and your wallet, please contact Hauk Kruse & Associates for more information at 314-993-4285 or click here to visit our website.