70% State Tax Credit FAQ
WHAT IS A STATE TAX CREDIT?
It is an amount subtracted from the amount of taxes you owe to the state. A tax credit is different from exemptions and deductions. In contrast to exemptions and deductions, which reduce a filer’s taxable income, credits directly reduce a filer’s tax liability — that is, the amount of tax a filer owes. Taxpayers subtract their credits from the tax they would otherwise owe to determine their final tax liability.
AND CARDV HAS A TAX CREDIT?
CARDV currently has 70% state tax credits for donations of $100 or more over the course of the calendar year. In other words, if you donate $100, your tax credit will be $70. The 70% state tax credit was effective July 1, 2022. All donations received prior to July 1 are still eligible for a 50% tax credit.
WHO IS ELIGIBLE?
If you are an individual or business and pay taxes in the State of Missouri and make a qualifying donation, you are eligible.
HOW MUCH DO I HAVE TO DONATE TO BE ELIGIBLE?
You only have to donate $100 or more throughout the calendar year to be eligible.
WHAT CAN TAX CREDITS BE APPLIED TO?
Income Tax (excluding withholding tax), Corporate Franchise Tax, Bank Tax, Insurance Premium Tax, Express Companies Tax.
HOW DO I APPLY FOR THE TAX CREDIT? IS IT EASY?
All you have to do is complete the Application for Claiming Tax Credits, and send it, along with proof of donation (if applicable) to CARDV. We’ve highlighted the portions most donors need to complete. CARDV completes the rest of the form and then submits it to the state.
Applying isn’t difficult, but you have to be sure to attach specific donation documentation and be sure to fill out the form correctly, or it will be returned. We suggest reading the Tips below. Feel free to reach out to our director at firstname.lastname@example.org if you have any questions.
WHAT KIND OF PROOF OF DONATION DO I NEED?
Cash: Receipt provided by CARDV
Check: Copy of the cancelled check, front and back (available on your bank statement, or can usually be printed directly from your bank website). If not possible, then include a copy of the original check and CARDV will attach a receipt.
Credit Card: Legible transaction receipt with the name and address of CARDV; name, address, and telephone number of the contributor; amount and the date the contribution was received; signature of a representative of CARDV. Receipts should have the credit card account number blacked out. Note: We proposed a simpler solution to this and submitted it to the state; it is pending approval. If approved, CARDV could provide the necessary documentation for you. Feel free to contact the director at email@example.com if you donated by credit card and want to confirm if you need to provide documentation or not.
Stocks and Bonds: Values of contributed stocks and bonds must be determined by a reputable source (e.g. Wall Street Journal, NYSE, NASDAQ, etc.). Information required when submitting applications for tax credit shall include the source and date the stock was valued and how the bond amount was determined.
Other: See page 2 of the tax credit application for additional information.
WHERE DO I SEND THE COMPLETED APPLICATION?
Please send your application to CARDV by January 13, 2023, in order to allow for time for the State to process it. You may mail it to:
Attn: Executive Director
PO Box 786
Fulton, MO 65251
TIPS AND COMMON MISTAKES WHEN COMPLETING THE APPLICATION
Apply early. Allow 5 business days for CARDV to receive and process your application. Then expect the State to take 8-10 weeks to process your application. You will receive your tax credit from the State in the mail.
Cumulative Donations: If you donated multiple times throughout the calendar year, you may submit one application with the total amount donated. However, all donations must be within the same calendar year.
Due to the change from 50% to 70% you will need to send in separate applications for donations made prior to July 1 , 2022 and for donations made after July 1, 2022.
If you are married and file jointly, include both your and your spouse’s name and signature.
Signatures must be ORIGINAL and signed in pen or they will be returned, and your tax credit will be delayed. If the signatures look like they are scanned, copied, or electronic, they will NOT be accepted.
Be sure to include your phone number with your donation if you are interested in a tax credit. This information is required on the application and receipt, and it is also helpful in case our Executive Director needs to contact you to clarify any information.