It may be beneficial to consider taking advantage of state tax credits when planning charitable giving.

If you contribute to a qualifying charity, you could receive a credit on your state taxes and a deduction for the difference on your federal taxes.

For example, if you make a $1,000 contribution to a charitable organization that is providing a 70% state tax credit, you will receive a $700 credit on your state taxes and a $300 deduction on your federal taxes.

Credits are more impactful to your tax bill because they directly reduce the amount owed in taxes. Deductions also reduce your tax bill, but they do so indirectly by reducing the amount of income that will be taxed. Examples of tax credits available in Missouri include:

Domestic Violence Shelter Tax Credit

By donating to a qualified domestic violence shelter, Missouri taxpayers can help fund temporary shelters for victims of domestic violence and can receive a tax credit for up to 50% of their contribution of $100 or more.

Diaper Bank Tax Credit

Donations to a qualified diaper bank help families in need. Missouri taxpayers can receive a tax credit for up to 50% of their contribution of $100 or more.

Children in Crisis Tax Credit

By donating to a qualified agency, Missouri taxpayers can help assist children in crisis situations and can receive a tax credit for up to 50% of their contribution of $100 or more.

Food Pantry Tax Credit

Donations of cash or food supplies to a qualified local food pantry, homeless shelter, or soup kitchen help individuals and families in need. Missouri taxpayers can receive a tax credit for up to 50% of their donations with a maximum credit of $2,500 per taxpayer, per year.

Maternity Home Tax Credit

By donating to a qualified maternity home, Missouri taxpayers can help fund maternity homes that assist pregnant women in carrying their pregnancies to term and can receive a tax credit for up to 50% of their contribution of $100 or more.


Abacus CPAs LLC has a great team of tax, accounting and business consulting professionals.  If you are interested and want to hear more about our services, please call 417-823-7171, and we are here to serve you and your business.

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