|
|
|
|
Did you know that when you or your business make a gift to one of the Community Foundation’s endowment funds, your contribution may be worth up to three times your out-of-pocket expense?
Thanks to the Michigan Community Foundation Tax Credit, you can multiply the effect of your charitable gift and receive a generous tax credit on your State taxes.
How Does It Work?
The law permits a taxpayer to reduce their Michigan Income Tax or Single Business Tax liability by a credit of 50% of the amount contributed to a Community Foundation endowment fund, subject to a maximum credit of:
a. $100 for an individual filing singly (based on a $200 contribution)
b. $200 for a married couple filing jointly (based on a $400 contribution)
c. $5,000 or 10% of tax liability before claiming any credits, whichever is less, for a resident
estate or trust (based on a $10,000 contribution)
d. $5,000 or 5% of tax liability before claiming any credits, whichever is less, for taxpayers filing Michigan Single Business Tax returns (based on a $10,000 contribution)
|
|
INDIVIDUALS – Your $200 gift may only cost you $38*
Assuming a Federal Marginal Income Tax Rate of 31%, the actual cost of your $200 gift to a Community Foundation endowment fund could be as little as $38. Your savings would be $100 on your state taxes (50% of the gift), plus $62 on your federal taxes if you itemize. Your total savings would be $162; making the true cost of your gift only $38.
MARRIED COUPLES – Your $400 gift may only cost you $76*
Assuming a Federal Marginal Income Tax Rate of 31%, the actual cost of your $400 gift to a Community Foundation endowment fund could be as little as $76. Your savings would be $200 on your state taxes (50% of the gift), plus $124 on your federal taxes if you itemize. Your total savings would be $324; making the true cost of your gift only $76.
BUSINESSES - Your $10,000 gift to Community Foundation endowment fund could be as little as $3,300 (assuming a projected State Income Tax liability of $100,000 and a Federal Marginal Income Tax rate of 34%). Your savings would be $5,000 on state taxes (50% of the gift) and $1,700 on your federal taxes. Your total savings would be $6,700 making the true cost of your gift only $3,300.
*NOTE: This information is intended for explanation purposes only. Actual tax-related savings might vary depending upon your income level and tax bracket. Your personal tax advisor can assist you with tax credit arrangements. Your gift to a Community Foundation will be acknowledged with a confirmation, which includes indication of tax credit eligibility to be used in the preparation of your State of Michigan Income Tax Return.
|
|
Main Page
| 2008 Board of Directors
| Calendar
Equal Access Housing Conference
| Community Assessment
| Programs
| Locations
| History
| Links
Staff
| Employment
| Area Statistics
| Library
To Apply For Services
| Home
| EO Employer/Program
| Month of the Young Child
For more information:
Community Action Agency
800-491-0004
© Copyright 2007 Community Action Agency. All Rights Reserved.
|
