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The State of Missouri offers income tax credits to residents who make qualifying contributions to agencies that create special affordable housing. The state does this to encourage support for proven, effective programs. Rainbow Village is one of these agencies. If you make a contribution to support our programs of providing homes for people with developmental disabilities, the state will reward you for your generosity with a state income tax credit. Who qualifies? Any individual with rental or business income (as confirmed by your filing of an IRS Schedule E or C) and any business subject to taxation under Missouri statue. Who benefits most? Anyone who is concerned about individuals with developmental disabilities has to make the most of their business resources. You can help others and gain benefits for yourself or your business at the same time. Ultimately, those who are in need of affordable housing in the community benefit most from this opportunity. For more information on the Missouri Affordable Housing Assistance Tax Credit Program, please contact Jo-Ann Goldstein at 314-567-1522, ext. 201. How tax credits work is outlined below. We suggest you consult your own tax preparer or accountant to determine the full benefit of the credit on your personal or company tax return. For a $1,000 cash gift to Rainbow Village using Tax Credits Missouri Tax Credit (55% of gift) $550 Federal Income Tax Deduction (33%) $330 State Income Tax Deduction (6%) $60 Less loss of Federal Tax deduction ($200) Total Savings $740 AFTER TAX COST $260 Example is for someone in a 33% Federal tax bracket. Consult your tax advisor to see how the credits will work for you.
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