Children in Crisis (CIC) Tax Credit
What is the Children in Crisis Tax Credit?
By contributing to a qualified Court Appointed Special Advocate, Child Advocacy Center or Crisis Care Center, Missouri taxpayers:
- Help fund services for children who have experienced or are at risk of abuse or neglect; and
- Can receive a tax credit for up to 50% of the qualified contribution.
What role does Department of Social Services' (DSS) play for this tax credit?
DSS determines which agencies meet the criteria of a "qualified agency" and notifies Department of Revenue. To become a qualified agency, each year interested agencies submit the following items to DSS:
- A completed Agency Eligibility Verification Application (DBF-12 form);
- A copy of their certificate of incorporation;
- Proof of application for or a copy of their tax-exempt status from the Internal Revenue Service; and,
- A brief statement of their primary business functions. Applicants qualify if they submit the appropriate paperwork and meet one of these conditions:
- They are a Court Appointed Special Advocate receiving funding under RSMo 476.777, including an association in Missouri affiliated with a national association organized to provide support to entities receiving funding from the Court Appointed Special Advocate fund.
- They are a Child Advocacy Centers listed in RSMo 210.001, Section 2.
- They are a Crisis Care Center, contracted with the state of Missouri, which provides temporary care for children whose age ranges from birth through 17 years of age whose parents or guardian are experiencing an unexpected and unstable or serious condition that requires immediate action. The Crisis Care Center provides short-term care (usually three to five continuous, uninterrupted days) for children who may be at risk for child abuse, neglect, or involved in an emergency.
Where are these qualified agencies located?
The link below lists where qualified centers are located for the tax year noted on the listing.
Who can claim this tax credit?
Beginning in January 1, 2007, qualified Missouri taxpayers may claim 50% of any $100 or more contribution made to qualified agencies. The minimum tax credit is $50. To claim the credit you must file a tax return between July 1 and April 15.
Examples:
Example 1: Mr. Smith donates $200 to a qualified agency on December 1, 2007. The qualified agency issues Mr. Smith a contribution verification documenting eligibility for a $100 tax credit. Mr. Smith completes the Miscellaneous Income Tax Credit form from the Department of Revenue and attaches it to his 2007 tax return along with a copy of the verification certification issued by the qualified agency. He files his tax return on March 17, 2008, and owes $150. The qualified agency was allotted $500,000 in available funds, but only $400,000 in claims was submitted. Mr. Smith claims and is allowed a $100 credit. He pays $50 in state tax.
Example 2: Ms. Brown donated $200 to a qualified agency on December 1, 2007. She submits the MO-TC form and a copy of the contribution verification certification with her 2007 tax return. Ms. Brown files her return on April 5, 2008. She owes $150 in state tax. Ms. Brown claims a $100 credit and pays $50. The qualified agency Ms. Brown chose was allotted $500,000 in available funds, but $1,000,000 in claims was submitted. This means Ms. Brown receives 50% of the requested amount, or a $50 tax credit. She may carry forward the remainder against a future tax liability. The Department of Revenue will issue Ms. Brown a notice of denial indicating a $50 balance is due. She can pay this amount within 60 days without incurring interest.
How are these Children in Crisis credits financed?
The unclaimed portion of the Special Needs Adoption Tax Credit finance the Children in Crisis tax credits.
Important Children in Crisis (CIC) Tax Credit Links:
- Children in Crisis Tax Credit Statute (RSMo 135.327)
- Instructions and Agency Eligibility Verification Application Form to Apply to Become an Agency Benefiting from This Credit
- Children in Crisis Tax Instructions and Forms (Missouri Department of Revenue)
- Regulations Governing The Processing And Awarding of Tax Credits (12 CSR 10-400.210)
- Where Can I Donate? (Address list for qualified agencies)
- To Learn More About Agency Eligibility Contact Department of Social Services at 573-751-7533 (M-F, 8:00-5:00)
- To Learn More About Claiming the Tax Credit Contact Department of Revenue, E-mail: taxcredit@dor.mo.gov or Phone 573-522-6864 (for individual tax) or Phone 573-751-4541 (for business tax)
01/12/10
