Potential Tax Savings Illustrations:

To illustrate the potential tax savings a donor to Scholarships for Education Choice could experience, the Sagamore Institute asked the certified public accounting firm of CapinCrouse, LLC (www.capincrouse.com) to provide some examples. Please understand that every potential donor’s circumstances are different, so the results may vary. You should consult with a tax professional to determine individual tax savings potential.

Amounts                                                      Federal tax brackets:

Donation: $50,000

28%

33%

35%

Federal Tax Savings $7,000 $8,250 $8,750
Indiana Tax Savings $25,000 $25,000 $25,000
Total Tax Savings $32,000 $33,250 $33,750
True Cost of Donation $18,000 $16,750 $16,250

Donation: $25,000

28%

33%

35%

Federal Tax Savings $3,500 $4,125 $4,375
Indiana Tax Savings $12,500 $12,500 $12,500
Total Tax Savings $16,000 $16,625 $16,875
True Cost of Donation $9,000 $8,375 $8,125

Donation: $10,000

28%

33%

35%

Federal Tax Savings $1,400 $1,650 $1,750
Indiana Tax Savings $5,000 $5,000 $5,000
Total Tax Savings $6,400 $6,650 $6,750
True Cost of Donation $3,600 $3,350 $3,250

Assumptions for savings illustration: federal and state tax filings occur for the year the donation is made. (PLEASE NOTE: The amount that you can reduce your federal taxable income may be impacted if your charitable giving for the year exceeds 30% of your income.)

example SGO

Note:  Liberty Christian School is not engaged in the practice of providing tax advice and this information does not constitute and is not a substitute for tax advice. Liberty Christian School recommends you secure the advice of competent tax advisers with respect to your personal tax situation.