Food Pantry Tax Credit
In Missouri, the Food Pantry Tax Credit allows donors to qualified food pantries to reduce their tax liability for the value of goods or cash given to a food pantry. Donors receive a tax credit for 50 percent of the value of their donation each year. The maximum credit is $2,500. Missouri makes just $2 million of these tax credits available. If more than $2 million is claimed, Missouri apportions the credits accordingly.
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Credit vs. Deduction
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With state income taxes, businesses and individuals are taxed according to how much money they make. State's often allow certain expenses to reduce the income that is taxed. These are tax deductions. Tax credits allow people to subtract the value of the credit from the taxes they owe.
Example
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If you make a $5,000 donation to a Missouri food pantry, you would be eligible for a $2,500 tax credit, unless the amounts are reduced. You may deduct this amount from your tax bill and if it is more than your tax bill you can carry the excess to future tax bills for three years. For federal tax purposes, you may deduct $5,000 from your taxable income. If your income is $65,000 and you have no other deductions, for example, you may be taxed on $60,000. If the credit is reduced because more people have claimed it, you may file an amended state tax return.
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To Claim the Credit
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To claim the tax credit, you must attach Form MO-TC (Miscellaneous Tax Credits) and Form MO-FPT (Food Pantry Tax Credit) to your Missouri tax return. Form MO-FPT should include name of the food pantry, the dates the donations were made and the name of the donor, according to the Missouri Department of Revenue. You should also attach a letter from each food pantry you donated to confirming they received your donation.
Eligibility
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The tax credit can be applied to individual income, corporate or Missouri fiduciary tax or any other tax authorized by Chapter 143, RSMo, excluding state withholding tax, according to the Missouri Department of Revenue. Persons not authorized to work in the U.S. are not eligible to claim the credit.
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References
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