Tax Credit for Individuals
Indiana will give you, through a tax credit, 50¢ on each dollar you give to Ivy Tech, not to exceed $200. This means that a $400 gift to Ivy Tech yields a $200 tax credit; a $200 gift yields a $100 credit; a $100 gift yields a $50 credit, and so on. In other words, you will be reimbursed half your gift by Indiana up to $200 if filing jointly and up to $100 if filing single. The tax credit is applied directly against the “bottom line” of your state tax return, either reducing the amount of taxes owed or providing a refund on taxes paid.
To take advantage of this opportunity, you must use the Indiana Department of Revenue Schedule CC-40 when filing your state income tax return. After clicking on the link, you will need to go to the last section on the page under “Other Individual Forms/Schedules” and choose the first option: CC-40 Indiana College Credit.
In addition to the Indiana tax credit, a contribution to Ivy Tech may also result in a federal tax deduction. Generally, to qualify for a federal tax deduction, you must itemize deductions on the Federal Tax Form 1040 (long form). The amount of the deduction is based on your income and the amount of your contribution. The federal tax deduction is computed as a reduction in your taxable income and therefore, ultimately, the amount of taxes you owe.
Indiana Tax Credit for Corporations
Indiana corporations may receive 50% credit for gifts, not to exceed 10% of the company’s adjusted gross income tax or $1,000, whichever is less.