Here we go again, letting you know one more time that there is another way to receive tax credits towards your Indiana tax return liability. If SGOs or NAPs tax credits seem too complicated to contribute or complete, then the Indiana college contribution credit is the one for you.
The Indiana college contribution credit, just like the NAP and SGO credits, gives you a 50% tax credit to apply towards the tax liability at year-end. Unlike the other two, this tax credit does cap your tax credit at $100 for single filers and $200 for MFJ. As long as you contribute to an eligible Indiana college/university, you will be able to receive the tax credit for this. You can download a list of eligible institutions here: List of eligible organizations
Tuition paid is not a contribution and does NOT qualify for this credit.
Organizations that you might not know which qualify:
The main difference that this credit has compared to the two credits in other blogs is that you can also make a non-cash donation and still receive the same tax credit for Indiana state tax liability.
Once the donation is made to the college, the college should send a letter, usually just thanking you for the contributions, and they will include the amount donated and the date it was given to them. You need this letter to prove your contribution when you complete your tax return.
Michael Salazar
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