Smile a little when you sign your Michigan Tax Return!

Uniquely, Michigan allows direct credit on your state income tax for gifts to any of the Marshall Community Foundation's endowment funds.

The law permits you to reduce Michigan Income Tax or Single Business Tax liability by a credit of 50 percent of the amount contributed, subject to a maximum credit as follows:

1. $100 for an individual filing singly (for a $200 contribution)
2. $200 for a married couple filing jointly (for a $400 contribution)
3. $5,000, or 10 percent of tax liability before claiming any credits, whichever is less, for a resident estate or trust (based on a $10,000 gift), and
4. $5,000, or 5 percent of tax liability before claiming any credits, whichever is less, for taxpayers filing Michigan Single Business Tax returns (based on a $10,000 contribution).

One more unusual and important fact: every penny you contribute to the Marshall Community Foundation supports Marshall needs. Through the thoughtful generosity of the Eaton Corporation and the W.K. Kellogg Foundation, all of our administrative costs for the next two to three years are covered by their grants.

Individual
Actual cost of a $200 gift to the Marshall Community Foundation could be as little as $69. Assume a Federal Marginal Income Tax rate of 31 percent.

The savings from federal taxes would amount to $31; the savings from state taxes would be half the gift, or $100. Total tax savings would be $131, leaving an actual cost to the donor of only $69.

Married Couple
Actual cost of a $400 gift to the Marshall Community Foundation could be as little as $138. Assume a Federal Marginal Income Tax rate of 31 percent.

The savings from federal taxes would amount to $62; the savings from state taxes would be half the gift, or $200. Total tax savings would be $262, leaving an actual cost to the donors of only $138.

Corporation
Actual cost of a $10,000 gift to the Marshall Community Foundation could be as little as $3,300. Assume a projected State Income Tax liability of $100,000, and a Federal Marginal Income Tax rate of 34 percent.

The savings from federal taxes would amount to $1,700; the savings from state taxes would be half the gift, or $5,000. Total tax savings would be $6,700, leaving an actual cost to the corporation of only $3,300. (NOTE: This information is for illustration only. Your individual tax situation should be reviewed with your personal or corporate tax advisor.)