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.  Even if you are not itemizing on your 2020 taxes, you can still claim this new 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!