2023 Tax Benefits for Joe’s Supporters

Considering a donation in 2023? It’s a good year to start, or continue. Here’s how your contribution can benefit both you and the community!

 
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Federal Deductions for Individuals

For Non-Itemizers (Using Form 1040 or 1040-SR):

Even if you don't itemize your deductions, you can still deduct up to $300 from your adjusted gross income for cash gifts made to charitable organizations.

Note: This doesn't include gifts to donor-advised funds or foundations.

For Itemizers (Using Form 1040 + Schedules 1-3):

You can deduct qualified contributions up to 100% of your adjusted gross income. This is an enhancement from the previous limit, where donors could only deduct up to 60% of their adjusted gross income.

Maryland Community Investment Tax Credits Program

If you're considering making a donation of $500 or more directly to Joe’s:

  • Your donation is eligible for the Maryland Community Investment Tax Credit (CITC) program. This means, in addition to federal and state tax deductions, you can receive state tax credits equal to 50% of your donation value. For example, a $500 donation provides a $250 tax credit.

  • These benefits are available for both individuals and businesses. So, whether you're a sole proprietor, corporation, or an individual donor, you can reap the benefits of this program.

  • It's important to note that these tax credits should be applied against taxes owed for the year the contribution was made. They cannot be used retroactively for prior years.

Benefits for Donors: By supporting local nonprofits through charitable donations, you can:

  • Reduce your Maryland tax liability.

  • Help a local nonprofit organization achieve essential community goals.

  • Create a targeted community impact.

  • Improve community relations and enhance your visibility.

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