Tax savings can reduce the net cost of your gift to IUPUI. Indiana taxpayers are allowed a credit of 50 percent of the contribution or $100 (on a single or fiduciary return) or $200 (on a jointly filed return), whichever is less.
View and download a printable copy of the Schedule CC-40 form for Indiana College Credit.
A federal income tax charitable deduction may be available if you itemize your expenses and deductions when filing IRS Form 1040.
For example, let's say assume a person has an annual income of $40,000, files an individual tax return, itemizes, and falls into the 25 percent marginal tax bracket. If this person made a $200 gift to a school at IUPUI in February 2016, after credits and deductions, it would result in an actual cost to the individual of $50.
This is how it works:
|Federal tax saving (-)||$50|
|Indiana tax credit (-)||$100|
|Net cost to the individual||$50|
Please consult your tax advisor for advice on your particular situation. You may view detailed IRS regulations in Charitable Contributions, Publication 526.