Tax Benefits for Charitable Giving
This year there are new tax incentives (state & federal) that help reward you for giving a gift to students at Goshen College.
Federal Income Tax Benefits: The CARES Act allows for an additional, “above-the-line” deduction for charitable gifts made in cash of up to $300 ($600 if married filing jointly). Even if you are not itemizing on your 2021 taxes, you can still claim this deduction. (See IRS Website here)
State Tax Credit (for Indiana Residents): The state of Indiana believes in its colleges, and it says so in dollars and cents. Indiana residents can receive a state tax credit for their financial support of Goshen College. This state tax credit totals for half the amount of contributions up to:
- $400 on a joint return
- $200 on an individual return
An Indiana College Credit form (Schedule CC-40) must be filed with the contributor’s income tax return.
Indiana also offers state tax credit for corporations: 50% tax credit for gifts up to $2,000. The credit cannot exceed 10% of the corporation’s Indiana adjusted gross income tax liability.
A gift to Goshen College = A gift to you
| Joint Return | Single Return | |
| Your gift of at least | $400 | $200 |
| State tax credit (50%) | -$200 | -$100 |
| *Federal income tax bracket (12%) | -$48 | -$24 |
| Cost of gift | $152 | $76 |
| _________ | ||
| Your gift of at least | $400 | $200 |
| State tax credit (50%) | -$200 | -$100 |
| *Federal income tax bracket (24%) | -$96 | -$48 |
| Cost of gift | $104 | $52 |
| _________ | ||
| *Cost of $1,000 gift: 12% bracket | $680 | $780 |
| *Cost of $1,000 gift: 24% bracket | $560 | $660 |
| *Cost of $1,000 gift: 32% bracket | $480 | $580 |
*Available to those who have sufficient deductions to itemize on their federal income tax return.
Give Today
Qualified Charitable Distributions (From IRA): There are many ways to make gifts to students, it doesn’t have to be direct cash! If you are 70.5+ years of age, you can get a significant tax benefit by giving to students directly out of your IRA through a process called Qualified Charitable Distributions. Call us and we’ll walk you through the process, don’t worry, it’s easy!