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Missouri Tax Credits
Your investment in the children of St. Joseph Institute is an
investment in the future. With a gift of at least $1,000 you may
also be eligible for a generous tax benefit from the State of Missouri.
THE AHAP TAX CREDIT PROGRAM
The Affordable Housing Assistance Program (AHAP) is a tax credit
program of the Missouri Housing Development Corporation. Tax credits
are awarded to organizations through a competitive process that
considers organizational program quality and fiscal responsibility.
St. Joseph Institute for the Deaf has been awarded and is making
available to donors, $100,000 in AHAP tax credits. Donors must make
their gifts by March 31, 2006 to qualify for this tax benefit.
BENEFITS TO THE DONOR
An eligible donor can receive a 55% Missouri State Tax Credit in addition to a federal charitable tax deduction for a qualified donation to St. Joseph Institute for the Deaf received by March 31, 2006.
For example, an initial gift of $5,000 St. Joseph Institute may actually "cost" a donor only a net of $1,350 depending on the eligibility of the donor to participate in this program and the donor's tax bracket as it relates to the federal tax savings offered (see examples and explanations following).
ELIGIBLE DONORS
To be eligible, you must meet one of these AHAP criteria:
- A corporation filing MO Form 1120
- A sole proprietorship filing Federal Form 1040 Schedule C and MO 1040
- A farm operation filing Federal Form 1040 Schedule F and MO 1040
- An individual reporting income from rental property or royalties on Federal Form 1040 Schedule E and filing MO 1040
- A small business corporation (S Corp) filing MO Form 1120S
- A partnership filing MO Form 1065
- A bank, credit institution, S & L, etc.
- An insurance company filing MO Insurance Tax
- An individual partner in a partnership or shareholder in an S-Corporation
BENEFITS FOR THE CHILDREN
Through this program and with all gifts to St. Joseph Institute for the Deaf, you help us ensure that children with hearing losses receive a superior educational foundation to prepare for a future based on skills, talents and choices rather than limitations and accommodations.
SAMPLE GIFT AND TAX CREDITS
| Your Initial Gift to St. Joseph Institute |
$50,000 |
$40,000 |
$20,000 |
$10,000 |
$5,000 |
| Missouri State Tax Savings |
($30,500) |
($24,400) |
($12,200) |
($6,100) |
($2,750) |
| Federal Tax Savings |
($6,800) |
($5,450) |
($2,700) |
($1,350) |
($900) |
| Your Actual Net Cost of Gift |
$12,700 |
$10,150 |
$5,100 |
$2,550 |
$1,350 |
Tax deductibility and application of tax credits:
It is dependent upon what tax year the company or individual files as to when the gift is deductible. When an individual makes a donation, it can be deducted on the tax return for that particular year, e.g., if the donation comes on December 15, 2005, it goes against the donor's 2005 tax return, if the donation comes on January 4, 2006, it is applied to the donor's 2006 tax return. When a company makes a donation, it is applied to the tax return at the end of the company's fiscal year (e.g., a donation made on June 1, 2005 by a company with a fiscal year of July 1, 2004 - June 30, 2005 is applied to the June 30, 2005 tax return; a gift made in July 2005 would be applied to the June 30, 2006 tax return).
It is important to note that a donor who pays taxes quarterly
can take advantage of the tax credit at the same time; therefore,
qualified donors can use the credit almost immediately.
Donors interested should contact their financial advisers for information regarding the personal tax benefit to be derived based on their particular tax situations.
For more information about this program, please
contact Lynn Raney, Director of Fund Development 636-532-3211, extension
216 or LRaney@sjid.org
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