Massachusetts Community Investment Tax Hack
Looking for an opportunity to be charitable this holiday season? Get a wicked tax bang for your benefactor buck while investing in a (Massachusetts) local community.
Here is how:
Take Beacon Hill up on their Community Investment Tax Credit offer. It pays big because In addition to the Federal tax deduction for charitable contributions, you (a Massachusetts taxpayer) also get a 50% Massachusetts tax credit if and when you give to one of these award winning local community development programs. (e.g. Franklin County CDC)
Basically, because of this deduction and credit combination, you can walk into your certified CDC’s office with a $1000 check for your local community and only $375 will come out of your pocket (assuming 25% federal tax bracket). Sounds good because it is good; just don’t forget to tell your tax preparer that you did it.
Note: This credit is refundable so you will still monetize the full 50% credit even if it reduces your MA tax below zero.