Michigan Tax Credit Examples:

Individuals
Actual cost of a $200 gift to the Frauenthal Center could be as little as $38. Assume a Federal Marginal Income Tax rate of 31%

The savings from federal taxes would amount to $62; the savings from state taxes would be half the gift, $100. Total tax savings would be $162, leaving an actual cost to the donor of only $38.

Married Couples
Actual cost of a $400 gift to the Frauenthal Center could be as little as $76. Assume a Federal Marginal Income Tax rate of 31%

The savings from federal taxes would amount to $124; the savings from state taxes would be half the gift, $200. Total tax savings would be $324, leaving an actual cost to the donor of only $76.

Corporations
Actual cost of a $10,000 gift to the Frauenthal Center 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%.

The savings from federal taxes would amount to $1,700; the savings from state taxes would be half the gift, $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 particular tax situation should be discussed with your personal or corporation tax advisor.