Last Minute Tax Tips: Missouri Food Pantry Credit

UPDATED FOR 2013

Did you know that if you donate money to a local food pantry in Missouri, you may be eligible for a Food  Tax Credit worth 50% of what you donate?  Let’s say for example that you gave $500 to your local food pantry.  You would get a receipt (or have the food pantry sign a special form) and then you’d use that to take $250 off of your Missouri state tax liability.  But that’s not all!  It’s a charitable donation so if you file a Schedule A to itemize your deductions, you’d reduce your federal taxable income by $500.  So if you’re in the 25% tax bracket, that would be another $125 you’d get back on your taxes.  That’s like paying $125 to have $500 worth of value.

But it’s even better than that.  I read on one of the food pantry websites that for every $1 of cash donated to the pantry, $20 worth of food is generated for the hungry.  It’s a gift that just multiplies.

You can’t claim a credit for over $2,500 (that would be a $5,000 donation.)  The credit is non-refndable, that means you can’t get a credit for more than the amount of your tax liability. Remember, since you’re getting a tax credit for the donation, you don’t get to claim the donation as a deduction on your Missouri return-it’s an adjustment you’ll have to make on the return.

The state of Missouri has only allocated $2,000,000 for the tax credit.  What happens is that all the credits are held until April 15th before they are allocated.  If there are over $2,000,000 of credits applied for, they will be allocated among the applicants.  In that situation, the credits that you weren’t able to use can be carried forward to next year.

This is one of the those few tax credits that normal, everyday kind of folks can use.  There’s no dollar minimums but I recommend donating at least $100 to make it payoff.  Most tax companies charge an extra fee for preparing Missouri Tax Credits.  It doesn’t make sense to claim a credit for less than the amount of the charge to prepare the form.

For more information about the Food Pantry Tax credit, click here to go to the Missouri Department of Revenue web site:  http://dor.mo.gov/taxcredit/fpt.php

The food pantry shelves are low and the need is at an all time high.   Even if you don’t want or need a Missouri tax credit, this is a charity that’s worthy of your support.