$$ Michigan Tax Credit $$

You can reduce your Michigan income tax with a credit for contributions to WRCJ 90.9 FM. The State of Michigan offers a special Tax Credit for charitable gifts to WRCJ. Michigan law permits individuals to reduce Michigan income tax by a credit of up to 50% of the amount contributed to WRCJ.

December 31, 2011 marks the end of the Michigan Public Contributions Tax Credit. This year is your final opportunity to support WRCJ FM 90.9, and get a credit on your taxes of up to $200 cash back on a maximum $400 donation if you file jointly.

Corporations can get up to $5,000 back for a donation of up to $10,000.

We thank the state for its encouragement of public donations with the tax credit the past 30 years, and of course your support will still be what powers public TV in 2012. But through December 31, 2011, make the maximum contribution and get the tax credit in return. Thank you!

Learn more at the website of The Community Foundation for Southeast Michigan. CLICK HERE.

The tax credits are subject to the following limitations:

• $100 in tax credit for an individual who is single or a married person filing separately (this is based on a $200 gift to WRCJ, which is the maximum gift allowed for an individual who is single or a married filing separately)
• $200 in tax credit for a married couple filing jointly (this is based on a $400 gift to WRCJ, which is the maximum gift allowed for a married couple filing jointly)
• The tax credit is in addition to the deduction for federal income tax purposes.
• You must deduct the fair market value of any bonus item received for deductions or credits. Please consult your tax advisor.

INDIVIDUAL EXAMPLE:

A married couple with a marginal federal income tax rate of 36% who itemizes deductions contributes $400 to WRCJ. The 50% state tax credit would result in state income tax savings of $200. In addition, the $400 gift would reduce the couple’s federal income tax liability by $144 ($400 x 36%). The state tax savings of $200 and the federal tax savings of $144 result in total tax savings of $344. Therefore, the married couple’s gift of $400 will only cost $56. It should be noted that the reduced Michigan taxes would reduce the size of the state income tax deduction on the federal return the following year.

Looking for more options? Click here to learn more about donating your retirement plan funds.

CLICK HERE TO CONTRIBUTE NOW AND GET THE MICHIGAN TAX CREDIT. 

If you have more questions about the Michigan Tax Credit, please contact your accountant or tax preparer.