Tax Credits for Library Donations Expire at End of December

— Submitted by the Novi Public Library

If you are thinking about making a donation to the , or any other library in the state of Michigan, you may want to consider making the donation now. As part of the tax reform bill signed this summer, all state income tax credits for charitable donations will be eliminated to help close Michigan’s budget deficit – effective Dec. 31.

The Novi Public Library appreciates a variety of donations including the following:

• IRA Charitable Rollover: A qualified charitable distribution for individuals 70 and a half years old or older from a traditional IRA to eligible charitable organization with a cap of $100,000 each year.

• Individual Donation: Individuals may reduce their Michigan income tax with a credit of 50 percent of the amount contributed to a public library. Tax credits allow up to 50 percent of a $200 donation ($100) for an individual.

• Joint Donation: Couples may reduce their Michigan income tax with a credit of 50 percent of the amount contributed to a public library. Tax credits allow up to 50 percent of a $400 donation ($200) for a married couple filing jointly.

• Businesses: Those entities filing the MBT may reduce their tax liability by $5,000 or 10 percent of business tax liability (whichever is less).

2011 Income Tax Savings and Net Cost of Charitable Gifts for Taxpayers

Taxable Income (Tax % Bracket) Amount of Gift Federal Tax Savings Michigan Tax Savings Net Cost of Gift Single $8,501-$34,500 (15%) $200 $30 $100 $70 Single $34,501-$83,600 (25%) $200 $50 $100 $50 Single $83,601-$174,400 (28%) $200 $56 $100 $44 Married (filing jointly) $17,001-$69,000 (15%) $400 $60 $200 $140 Married (filing jointly) $69,000-$139,350 (25%) $400 $100 $200 $100 Married (filing jointly) $139,351-$212,300 (28%) $400 $112 $200 $88

One of the reasons for our Library’s success is the generous contributions that supporters have made over the years. We sincerely thank everyone considering a donation to the Novi Public Library. For more information on the Novi Public Library or tax credit information for library donations, visit our website.