$$ Michigan Tax Credit $$

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.

Give today and get the Michigan tax credit! 

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 the Detroit Public Television, 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.
  

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.

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Congress has taken important steps to encourage charitable giving. As part of tax laws passed in October 2008, you may now enjoy an opportunity to make tax-free charitable gifts. LEARN MORE!

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