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Michigan Tax Credit
Donors to community foundations in Michigan not only have the satisfaction of doing good, but they also benefit from a special State of Michigan Tax Credit in addition to the Federal income tax deduction for charitable gifts. The Michigan Tax Credit allows a 50% direct
Michigan
personal income tax credit or Michigan Single Business Tax Credit for all gifts to permanently endowed funds within a community foundation. Maximum amounts that can be credited are $100 (for a $200 gift) for a single filer, $200 (for a $400 gift) for a married couple filing jointly, and up to $5,000 (for a $10,000 gift) for businesses filing subject to single business tax.
Giving and Gaining a
Michigan
Tax Credit:
| |
|
Single |
Married |
Business |
| Amount of Gift |
|
$200 |
$400 |
$10,000 |
| State Tax Credit |
|
$100 |
$200 |
$5,000 |
| Federal Tax Rate |
|
31% |
31% |
34% |
| Federal Tax Savings |
|
$62 |
$124 |
$3,400 |
| Total Tax Savings |
|
$162 |
$324 |
$8,400 |
| Actual Cost of Gift |
|
$38 |
$76 |
$1,600 |
This information is for illustration only. The Community Foundation does not offer tax advice. Consultation with your tax advisor is recommended. For more information on the Michigan Tax Credit.
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