Jackson Community Foundation - Michigan Tax Credit

Serving Jackson County, Michigan since 1948.

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Michigan Tax Credit

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The Michigan Community Foundation Tax Credit

Did you know that when you or your business make a gift to one of The Jackson 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 your charitable gift and receive a generous tax credit on your Michigan 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:

• $100 for an individual filing singly (based

on a $200 contribution)

• $200 for a married couple filing jointly

(based on a $400 contribution)

• $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) $5,000 or 5% of tax liability before claiming any credits, whichever is less

• or taxpayers filing Michigan Single

Business Tax returns (based on a $10,000 contribution)

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Michigan Community Foundation Tax Credit Examples

Corporate Tax Savings:

Amount of Annual Gift:

$10,000

Single business tax credit 50%

$5,000

Federal tax savings of 35%

$3,500

Actual cost of corporate gift:

$1,500*

Individual Tax Savings:

Amount of Annual Gift:

$200

Michigan state tax credit:

$100

Federal tax rate:

36%

Federal tax savings:

$72

Actual cost of gift:

$28*

Married Tax Savings

Amount of Annual Gift:

$400

Michigan state tax credit:

$200

Federal tax rate:

31%

Federal tax savings:

$124

Actual cost of gift:

$76*

* NOTE: This information is intended for explanation purposes ONLY. Actual cost is calculated in the year of the gift. Actual

tax-related savings may vary depending upon your income level and tax bracket. Your personal tax advisor can assist you with tax credit arrangements. Your gift to The Jackson Community Foundation will be promptly 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.

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