YOP Tax Credits

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Tax Credits for Donors

YOP Tax Credit Example Individual cash gift of $1000 (from taxpayer in the 36% tax bracket)
Cash Gift	($1,000)
Federal Deduction	360
Missouri Tax Deduction	60
YOP Credit (50% of gift)	500
*Reduced state tax deduction on federal return()**	(180)
Out-of-pocket cost	$260
(*)Represents 36% of the $500 YOP tax credit. Your deduction for statetaxes on your federal return is reduced by $500 because your state taxpayment is being reduced by $500. As with any charitable giving, always consult your accountant to determine your individual tax savings.

Missouri residents and institutions that make donations to Aim High are probablyeligible to receive a significant tax credit under Missouri's Youth Opportunity Program (YOP). Donors may contribute up to $400,000 per calendar year to Aim High and, in return, receive half of the donationback in the form of a Missouri state tax credit. Aim High tax credits are limited and available on a first-come, first-serve basis.

How do Credits Differ from Deductions?

Atax credit is a reduction of the taxes you owe the State of Missouri.When you donate to Aim High, you may be eligible to deduct the amountof your donation from your taxable income for the purposes of reducingyour federal and state income tax bills.

Who is Eligible?

Anyentity or individual who pays Missouri income tax and files a ScheduleA for itemized deductions may receive a tax credit. This includes:

Individuals

Corporations

Partnerships

S Corps

LLCs

What Forms of Donations are Eligible?

Cash

Stocks/Bonds

Mutual Funds

Ifthe donor does not owe enough taxes in the tax year in which thecontribution is made, can the credit be used on subsequent tax returns?

Yes.The contributor may apply the tax credit in the tax year thecontribution was given or in the five succeeding tax periods.