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- A percentage of your gift, depending on your tax bracket, can be deducted from your federal income tax. Additionally,
- Donors can take a credit against their State of Michigan income tax in an amount equal to 50% of their gift up to $100 for an individual and $200 for a joint return.
- Business Donors paying a single business tax can take as a tax credit the lesser of 50% of the gift up to $5,000 or 5% of their single business tax liability.
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Single
Taxpayer
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Married
Taxpayer
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Business
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ACTUAL GIFT
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$200
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$400
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$10,000
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Michigan Tax Credit
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$100
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$200
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$5,000
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Federal Tax Rate
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15%
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36%
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34%*
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Ferderal Tax Savings
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$30
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$144
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$1,700*
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Total Tax Savings
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$130
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$344
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$6,700
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ACTUAL COST OF GIFT
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$70
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$56
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$3,300
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* Federal tax liability is adjusted for decreases in the Michigan Single Business Tax Deduction.
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