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Tax Credit Consulting: Donations to Medical Research Hot Springs National Park AR

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.

Mr. Charles W. Beale (RFC®), CFP, CLU
(501) 922-9259
25255 Highway 5, #J
Lonsdale, AR
Company
C.W.
Qualifications
Education: BA
Years of Experience: 47
Membership
IARFC, MDRT, FPA, SFSP, NAIFA
Services
Invoice, Estate Planning, Retirement Planning, Tax Planning, Seminars Work, Annuities, Life Insurance, Long Term Care Insurance, Asset Protection

Data Provided by:
Jackson Hewitt
(501) 624-5252
405 Airport Road
Hot Springs, AR

Data Provided by:
Newkirk & Nordquist PA
(501) 767-6635
1540 Airport Rd Ste B
Hot Springs, AR

Data Provided by:
Mr. Charles W. Beale (RFC®), CFP, CLU
(501) 922-9259
25255 Highway 5, #J
Lonsdale, AR
Company
C.W.
Qualifications
Education: BA
Years of Experience: 47
Membership
IARFC, MDRT, FPA, SFSP, NAIFA
Services
Invoice, Estate Planning, Retirement Planning, Tax Planning, Seminars Work, Annuities, Life Insurance, Long Term Care Insurance, Asset Protection

Data Provided by:
H&R Block
(501) 663-0071
600 S UNIVERSITY AVE
LITTLE ROCK, AR

Data Provided by:
Hutchison Income Tax
(501) 767-1513
1560 Airport Rd Ste A
Hot Springs, AR

Data Provided by:
H&R Block
(501) 525-0544
224 CORNERSTONE blvd
HOT SPRINGS, AR

Data Provided by:
Jackson Hewitt
(501) 623-1244
3648 N. Highway 7 Ste B
Hot Springs Village, AR

Data Provided by:
Mr. Jon Richard Abele (RFC®), JD
(870) 856-3441
2200 Hwy 62/412
Hardy, AR
Qualifications
Education: BA, JD
Years of Experience: 35
Membership
IARFC, Bar
Services
Invoice, Estate Planning, Business Planning, Retirement Planning, Tax Planning, Charitable Planning, Asset Protection, Compensation Plans

Data Provided by:
Big Money Tax Service
(870) 238-9200
106 Front Street S
Wynne, AR
 
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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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