Two great income tax deduction options

Monday, December 10, 2012

Despite all of the discussion around the impending financial cliff, there is a way to lessen state income tax burden that is not often discussed.

Up to $200 per individual and $400 for couples filing jointly, given to an Indiana-funded university will receive a direct deduction of 50 percent of the amount given off the state income tax bill.

Because Purdue Extension is part of a state funded university, one can make a donation to the local Extension Office that would qualify.

Therefore a $100 contribution to the Purdue Extension-Putnam County program would only cost one only $50.

You can also specify how you would like the money to be used (i.e. 4-H, youth development, agriculture, natural resource, or health and human science educational programming or equipment).

One could even specify the gift be used for a specific educational program or topic (i.e. 4-H workshop, advanced Master Gardener workshop, resume/job application preparation workshop, etc.).

Some limitations do exist. For example funds donated for awards or scholarships would not be eligible for the additional direct state tax deduction.

Give the office a call and ask about this excellent way you can support community programs for minimal cost to your pocket due to the additional state tax break.

Also one can make a donation to the Putnam County Community Foundation and name the "Putnam County Fairground Endowment" as the recipient.

While this option is not eligible for the 50 percent state tax credit that a state funded university or college provides, it is a great option in that the Putnam County Community Foundation is a 501(c)3 entity that provides opportunity for the general state and federal income tax deduction via a reduction in taxable income.

A donation to Fairgrounds endowment certainly helps Extension programs who often benefit because they use the Putnam Fairgrounds facilities.

If you desire to see the fairgrounds maintained for your children and grandchildren, this option will certainly benefit the facility.

The goal was $100,000 in the first year that began back during the summer of 2011 with the endowment initiation and it is at the three-quarter point.

There is approximately $1,200 still needed to maximize the leverage of matching funds offered by the Putnam County Community Foundation Endowment Builders program.

Check our website to view the most up to date info.

You can contact the local Purdue Extension Office by calling 653-8411 for more information regarding column topics or to RSVP for upcoming events.

It is always best to call first to assure items are ready when you arrive and to RSVP for programs.

While many publications are free, some do have a fee. All times listed are Eastern Time.

Upcoming Events

Dec. 11 -- Bistate Crops Conference, CCA & CCH offered, Beef House, 8:30 a.m.

Dec. 13 -- Last chance PARP, Clay County, 12:30 p.m.

Dec. 18 -- Region V Indiana Beef Cattle Assoc./Purdue Program, Clay Co. Fairgrounds, 6:30 p.m. (RSVP Extension Office 12/11).

Dec. 24-25 -- Extension Office Closed for Christmas Holiday.

Dec. 31-Jan. 1 -- Extension Office Closed for New Years Holiday.

Jan. 8 -- 4-H Junior Leader Meeting, Fairgrounds, 7 p.m.

Jan. 10 -- 4-H Volunteer Development Meeting, Location TBA, 6:30 p.m.

Jan. 17 -- 4-H Junior Leader Meeting, Fairgrounds, 7 p.m.

Jan. 21 -- Extension Office Closed, MLK Holiday.

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