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.
Federal tax regulations have changed for 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.
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.