Here’s how it Works!
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1.Donate $500 or more to Caroline Habitat for Humanity
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2.Fill out a short information form (Habitat office will assist and complete)
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3.Deduct 1/2 the amount of the donation from your Maryland Income Tax
The State of Maryland Department of Housing and Community Development now authorizes a tax credit for donations, from individuals as well as businesses, to Caroline County Habitat for Humanity. The tax credit program is described at www.neighborhoodrevitalization.org/Programs/CITC/CITC.aspx. One-half the amount of the donation can be deducted from the Donor’s Maryland Income Tax. The deduction is taken when filing the annual Form 502 at the end of the tax year. This deduction is in addition to the regular charitable deduction which is applied against your income.
The tax credit, 50% of the deduction, COMES OFF YOUR TAX BILL!
For example:
A you make a $500 contribution to Caroline Habitat for Humanity.
On the MD Tax Form 502, you take the normal charitable deduction, reducing net income and tax owed by approximately 5% of $500 ($25).
On the same Form, after computing tax owed (or refund) take a tax credit of $250, reducing your tax due or increasing your refund by that amount.
Total amount of money returned to you by the State of Maryland: $275!
Caroline Habitat for Humanity realizes a $500 contribution
that only costs you $225. WHAT A DEAL!
Of course, the normal charitable deduction can also be taken on your Federal tax.
Note: a minimum contribution of $500 is required in order to take the MD tax credit.
For more information contact the Caroline County Habitat for Humanity office: 410-479-9200.
