About the State of Michigan Tax Credit

Gifts to permanently endowed funds at community foundations throughout Michigan yield incredible tax savings to donors. Thanks to federal income tax deductions and the Michigan Community Foundations Tax Credit, significant gifts to AAACF can be made at relatively little cost to donors.

Note that the Tax Credit limit is $100 for single-filing taxpayers, $200 for married couples filing jointly, and up to $5,000 for businesses filing single tax returns.

	Single Itemizer	Married Itemizer	Corporation
AMOUNT OF GIFT	$200	$400	$10,000
State Tax Credit	$100	$200	$5000
Federal Tax Rate	33%	33%	35%
Federal Tax Savings*	$66	$132	$1750
Total Tax Savings	$166	$332	$6750
ACTUAL "COST" OF GIFT	$34	$68	$3250

*Note: These examples are for illustration only.  Your actual tax savings may vary depending on your income and tax bracket.  Also note that your savings in Michigan taxes may reduce the amount of the State income tax deduction on your Federal return the following year.  The corporate tax credit is limited to 5% of SBT liability.  Your tax advisor can provide information pertinent to your own particular circumstances.