While, as Indiana estate planning attorneys, we offer no tax advice, instead working together with our clients’ tax and financial planning advisors, we find that charitable giving is an important element in many of our clients’ overall estate plans. Donors of cash to public charities can take significant deductions in their Federal Income tax bill now!
The welcome news this year is that, this year, in addition to federal tax credits, Indiana residents can take advantage of a brand new charitable deduction – this one on state taxes. Recognizing the growing need for more affordable home ownership options in our community, the Indiana state government passed the Attainable Homeownership Tax Credit, a $4 million program designed to incentivize individuals and businesses to contribute to Habitat for Humanity affiliates. When you donate, you can receive a tax credit, worth 50% of your donation, against your 2024 Indiana tax bill for you or for your business.
In addition to this brand-new opportunity, Indiana offers tax credits for:
- Charitable Contributions to Higher Education
- Foster Care Donation Credit
- Neighborhood Assistance Foster Care Donation Credit
- School Scholarship Tax Credit
Estate planning and charitable giving are very much related. Using the annual gift tax exclusion (up to $18,000 per recipient in 2024), for example, helps reduce the size of the estate later.” In addition to the tax benefit, providing financial support while you’re alive could also strengthen family bonds and foster a sense of gratitude,” Anders Skagerberg of the Albion Financial Group points out.
In the Thanksgiving season, as the end of the year approaches, “tis the season to be charitable, and perhaps to earn Indiana Tax Credit to boot!
– by Kristina Shover, attorney with Rebecca W. Geyer & Associates
