Michigan Cuts Charitable Contributions Tax Credits--Giving Proactively

No More Public Charitable Contributions Tax Credits for Michigan As of New Year's Day, residents of Michigan can no longer claim charitable contributions to homeless shelters, food banks, community foundations, public universities or other nonprofits on their state income tax, says CBS Detroit. As part of the Public Act 38 budget cuts package, Gov. Rick Snyder repealed Section 261 of the Michigan Individual Income Tax Act, eliminating charitable giving credits. Non-profits are hopeful that people won't stop giving despite the loss of the income tax credit. But these are tight financial times: unemployment is high, costs are sky-rocketing and cuts are happening everywhere. This was written as straight news so I couldn't add commentary, but here's one suggestion. Instead of giving to colleges and universities, try supporting one college student. If you list it as a gift, you may be able to claim that as a tax deduction. Another option in lieu of lost tax credit: donate used goods instead of money to charities. You can claim those donations on federal income tax and you aren't out such a large chunk of change. Consider donating durable or consumable goods to homeless shelters, too. That way you can be sure your donation is wisely spent. Here's information about these changes for residents of Michigan to make proactive donations. Read on ...

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