Donate Before Sunday To Take Advantage Of Michigan Tax Credit
Some Michigan tax credits will expire at the end of the year. Many charities and nonprofit organizations are encouraging people to donate now to take advantage of the current tax credit before it expires.
WZZM explains which donations are eligible for the 50% tax credit and how much individuals can get back:
The tax credits of up to $100 for an individual or $200 for a couple are nonrefundable, meaning they can only be applied against taxes owed.
Only three types of nonprofits are eligible — homeless shelters and food banks; public institutions such as universities, libraries, public broadcast entities and the Detroit Institute of Arts, and community foundations such as the Community Foundation for Southeast Michigan.
Because couples can earn credits of up to $200 through donations to each of the three groups, the maximum charitable credit a couple can earn is $600.
Many organizations are worried about how the loss of this tax credit will effect them in 2012 and beyond. The credits were worth about $50 million to Michigan donors last year.
If you are planning to make a donation soon, it makes sense to do it this week to make both your donation and money go as far as possible.