Indiana state tax benefits
To encourage giving, the State of Indiana allows a credit for gifts made to colleges and universities in Indiana. Because this is a tax credit, the allowable amount comes right off the bottom line of your tax bill.
The size of your credit is based on the total amount you donate to qualifying institutions in a calendar year. This credit is 50% of contributions up to $200 in gifts for single filers or $400 for joint filers. A married couple, for instance, can give $400 and have $200 taken right off their state tax bill. That $400 contribution ends up costing only $200! Look for Form CC-40.
If you itemize on your federal tax return, your contribution is tax-deductible after subtracting the value* of any thank-you gifts you receive in return. The IU Foundation will mail you an acknowledgment of your contribution complete with tax information. Charitable gift tax advantages vary by individual.
* IRS regulations require that we calculate the “fair market” value of the gifts you return. In most cases, this is far more than what the station actually pays for the gift.
The Consolidated Appropriations Act Tax Benefits
We are deeply grateful for your continued kindness and support during these deeply challenging times. As always, when it comes to taxes and charitable giving, it's important to discuss these new provisions with your financial or legal advisor.
The Consolidated Appropriations Act extends some of last year’s CARES Act benefits to 2021. The law extends and modifies the charitable deduction that non-itemizers can claim for cash gifts they make to public charities.
Giving Opportunity for Non-Itemizers
The universal charitable deduction is an “above-the-line deduction” capped at $300 for outright gifts of cash to qualified charities if you're filing singly, or $600 if you’re filing jointly. This deduction can be claimed by non-itemizers in addition to their standard deduction. Only contributions made during the 2021 calendar year qualify.
Lifting of Cap on Annual Contributions for Itemizers and Corporations
For those who do itemize their deductions, the new law also allows for cash contributions to qualified charities, including WFIU and WTIU, to be deducted up to 100% (up from 60%) of your adjusted gross income for the 2021 calendar year.
The limitation on deductions for cash contributions by corporations has also been temporarily increased, from 10 percent of taxable income to 25 percent.
Federal tax regulations have changed as of 2018!
Here is a link to a simple graphic on the new rules for itemizing and standard deductions passed in the Tax Cuts and Job Act of 2017 to help you in your charitable giving for 2018 and beyond.
We encourage you to talk to your tax or financial advisor to better understand how this legislation impacts your individual tax situation.