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Tax Credit Consulting: Donations to Medical Research Brattleboro VT

The fact that a business might receive a tax credit for money devoted to research and development under programs designed to encourage R&D for its potential economic impact makes it seem logical that donations by individuals would qualify for credits as well. The fact is that several States have programs that give direct tax credits for individual donations to qualified Medical Research programs.

Liberty Tax Service
(866) 871-1040
972 Putney Rd # 6
Brattleboro, VT

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Champlain Tax Service
(802) 863-1040
20 Kimball Ave
South Burlington, VT
 
Misasi & Misasi PC
(802) 388-6307
11 Ct St
Middlebury, VT

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H&R Block
(802) 479-9100
TWIN CENTER PLAZA SHOPPING CENTER 1284 RTE 302
BERLIN, VT

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Kupiec Al & Associates
(802) 879-1509
58 Pearl St
Essex Junction, VT
 
H&R Block Inside St Albans Commons
(802) 524-3140
178 SWANTON RD
SAINT ALBANS, VT

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Harton & Associates Robert & Jeff
(802) 878-4458
57 River Rd
Essex Junction, VT
 
H&R Block
(802) 442-3100
222 NORTH ST
BENNINGTON, VT

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Associates In Accounting
(802) 878-9619
6 Pinecrest Dr
Essex Junction, VT
 
Alpha Omega Tax And Investment
(802) 878-6155
1 Market Pl Unit 22
Essex Junction, VT
 
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Tax Credit Consulting: Donations to Medical Research

Tax Credits for Donations to Medical Research

While many States are offering tax credits for donations to Medical Research, they must be counted as deductions for charitable contributions on Federal tax returns.

Tax Credits for Donations to Medical Research

The fact that a business might receive a tax credit for money devoted to research and development under programs designed to encourage R&D for its potential economic impact makes it seem logical that donations by individuals would qualify for credits as well. The fact is that several States have programs that give direct tax credits for individual donations to qualified Medical Research programs.

A tax credit has a major advantage over a tax deduction. The tax credit comes directly off the amount of tax owed. Therefore, it is not subject to any modification based on income or tax rate. If you have a tax credit of $1000, you are going to owe $1000 less tax regardless of your income. If you have a tax deduction of $1000, your actual savings is going to be $1000 times whatever your tax rate is based on your gross adjusted income. The more money you earn, the higher your tax rate and the more your deduction will save you in tax actually owed.

So, the question could be asked why States are giving tax credits for donations to Medical Research and the Federal tax codes are considering them only as deductions under the heading of charitable deductions. The answer has more to do with the nature of politics in a representative democracy like the United States than with tax codes. Some of the time, a good idea takes a little bit of time getting from the State level to become the law of the whole land.

Tax credits are often used to encourage activities that benefit the country as a whole. Medical Research would certainly seem to fit into that definition. However, the budget demands of the country and the need to get a majority of the Federal Government to accept this idea makes it a slow and time consuming ...

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