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NEIGHBORHOOD ASSISTANCE PROGRAM (NAP) through Adult Life Training, Inc.

If you donate to certain public charities then Indiana will give you a tax credit equal to half of your donation, so effectively it costs you half as much to help that charity. This is one way that Indiana encourages Hoosiers to donate and charities to perform certain desirable work, such as employment training or affordable housing. The public charity provides a letter to you as instructed by The Indiana Housing and Community Development Authority, which you use on your Indiana individual tax return to reduce your State income tax.

Per The Indiana Housing and Community Development Authority rules, we must give away 60% of our remaining $3,808 NAP tax credits to donors before the end of December 2018.   If you would like to support our work and receive half your donation back as a tax credit, this is the time to donate. Our PayPal donate button is on the right, or checks can be mailed to us at Adult Life Training, Inc., 3301 E Coliseum Blvd, Fort Wayne, IN 46805.

Donations must be at least $200 to qualify (because the minimum NAP tax credit that we may give is $100). The Indiana Housing and Community Development Authority provides more information:

graphic of IHCDA NAP Information

IHCDA NAP Information

 

FROM: Indiana Housing & Community Development Authority • www.in.gov/ihcda/ihcda • (317) 232-7777

SUBJECT: NEIGHBORHOOD ASSISTANCE PROGRAM (NAP) through Adult Life Training, Inc.

WHAT IS NAP?

The Neighborhood Assistance Program (NAP), established by Indiana Code 6-3.1-9, offers $2.5 million in tax credits ($40,000 maximum per organization) annually for distribution by not-for-profit corporations. Organizations use NAP tax credits as an incentive to help them leverage more contributions from individuals and businesses for programs and services benefiting economically disadvantaged households or communities.

HOW DO THE CREDITS WORK?

Organizations, corporations and individuals are each eligible to make a contribution* to a NAP agency. When they do, they will receive a tax credit on their Indiana taxes worth 50% of their contribution. For example: If an individual contributes $1,000 they will receive a $500 Indiana tax credit. Donations are reported to the Indiana Department of Revenue (IDOR) and a credit is given to the donor’s state tax liability.

WHAT ARE ELIGIBLE CONTRIBUTIONS?

• Cash
• Check
• Credit Card
• Stock (which has been liquidated)
• Contributions designated through United Way
• In-kind donations** (exclusively building materials)
• Property donations

*No single contributor may donate more than $50,000 in a calendar year. Contributions of amounts smaller than $200 will only be accepted if the awardee’s remaining credit balance is less than $100 .
**Services (sweat equity), supplies and equipment are not eligible in-kind donations.

WHAT ARE ELIGIBLE PROJECTS?

• Affordable Housing
• Counseling
• Child-care
• Educational Assistance
• Emergency Assistance
• Job Training
• Medical Care
• Recreational Facilities
• Downtown Rehabilitation
• Neighborhood Commercial Revitalization

For more information contact:

Adult Life Training, Inc. on the beautiful ALC Campus, 3301 E Coliseum Blvd, Fort Wayne, IN 46805 260.432.0014 x128

or the Indiana Housing & Community Development Authorityhttp://www.in.gov/myihcda/nap.htm • (317) 232-7777


Tax Credits Information available from IRS Now

This in email from IRS today. The child tax credits for 2018 has drastically INCREASED over 2018 – working poor and middle class families get about twice as much credit as previously, including for special needs children older than 17. Details on how to get the money are at the IRS link via govdelivery.com. The content of their email is as follows:


Issue Number:    IR-2018- 217


Get Ready for Taxes:
Here’s how the new tax law revised family tax credits

WASHINGTON – More families will be able to get more money under the newly-revised Child Tax Credit, according to the Internal Revenue Service.

This is the third in a series of reminders to help taxpayers get ready for the upcoming tax filing season. Additionally, the IRS has recently updated a special page on its website with steps to take now for the 2019 tax filing season.

The Tax Cuts and Jobs Act (TCJA), the tax reform legislation passed in December 2017, doubled the maximum Child Tax Credit, boosted income limits to be able to claim the credit, and revised the identification number requirement for 2018 and subsequent years. The new law also created a second smaller credit of up to $500 per dependent aimed at taxpayers supporting older children and other relatives who do not qualify for the Child Tax Credit.

“As we approach the 2019 tax-filing season, I want to remind taxpayers to take advantage of this valuable tax credit if they are eligible to claim it,” said IRS Commissioner Chuck Rettig. “Tax reform changed the tax code significantly and doubling the Child Tax Credit is an example of how the changes impact taxpayers.”

Here are some important things taxpayers need to know as they plan for the tax-filing season in early 2019:

Child Tax Credit increased

Higher income limits mean more families are now eligible for the Child Tax Credit. The credit begins to phase out at $200,000 of modified adjusted gross income, or $400,000 for married couples filing jointly, which is up from the 2017 levels of $75,000 for single filers or $110,000 for married couples filing jointly.

Increased from $1,000 to $2,000 per qualifying child, the credit applies if the child is younger than 17 at the end of the tax year, the taxpayer claims the child as a dependent, and the child lives with the taxpayer for more than six months of the year. The qualifying child must also have a valid Social Security Number issued before the due date of the tax return, including extensions.

Up to $1,400 of the credit can be refundable for each qualifying child. This means an eligible taxpayer may get a refund even if they don’t owe any tax.

For more information, see Publication 972, Child Tax Credit, available soon on IRS.gov.

New Credit for Other Dependents

A new tax credit – Credit for Other Dependents — is available for dependents for whom taxpayers cannot claim the Child Tax Credit. These dependents may include dependent children who are age 17 or older at the end of 2018 or parents or other qualifying relatives supported by the taxpayer.

During the upcoming tax-filing season, the IRS urges taxpayers to use the agency’s Interactive Tax Assistant to see if they qualify for either of these credits. To find out more, visit IRS.gov.


Indiana Tax Breaks available for donors to Adult Life Training, Inc.

I am currently reviewing the legal details, but Adult Life Training, Inc. has received $3,808 in Neighborhood Assistance tax credit Program (NAP) tax credits, which can be given to those who support our job skill training work with a donation.

The general restrictions that I have thus far garnered from the instructions from IHCDA are:

  1. This is a way of encouraging cash donations to forward our work
  2. Both individuals and businesses / corporations may participate, and the amount can be split across stockholders, partners, spouses (if filing separately)
  3. One half the donated amount may be provided back to the donor as NAP tax credits
  4. The smallest tax credit per entity is $100, so the smallest donation is $200
  5. The NAP tax credit MUST be used to pay actual Indiana Income Tax liability, and Indiana will NOT refund any excess
  6. In-kind things such as donated labor are not allowed for NAP tax credits
  7. As in most things involving government, if you are interested in supporting our free public job skills training programs with a donation, and would like to receive half that amount back usable as a credit against your Indiana income tax, there is a form to fill in – please email me at jdnash@alt-fw.org or call John Nash at 260.432.0014 x128 Tuesday through Friday.

The organizations which have received NAP tax credits to reward donors for supporting their work in the Fort Wayne area this year are:

Community Transportation Network,
Adult Life Training, Inc.,
Big Brothers Big Sisters of Northeast Indiana,
Blue Jacket, Inc.,
Boys & Girls Clubs of Fort Wayne,
Caring About People, Inc.,
CASS Housing Inc.,
Center for Nonviolence, Inc.,
Community Action of Northeast Indiana, Inc. d/b/a Brightpoint,
Community Harvest Food Bank of NE Indiana, Inc.,
Crosswinds, Inc.,Early Childhood Alliance,
Easterseals Arc of Northeast Indiana,
Family & Children’s Services,
Habitat for Humanity of Greater Fort Wayne,
Inner City Hope Corporation,
Interfaith Hospitality Network of GFW, Inc. (dba Just Neighbors Interfaith Homeless Network)
Fort Wayne Junior Achievement of Northern Indiana,
Lifeline Youth & Family Services, Inc.,
Matthew 25, Inc.,
Mustard Seed Furniture Bank of Fort Wayne, Inc.,
NeighborLink,
Fort Wayne RSVP of Allen County, Inc. (DBA: Volunteer Center),
The Literacy Alliance,
Turnstone Center for Children and Adults with Disabilities,
Vincent Village, Inc.,
Volunteer Lawyer Program of Northeast Indiana, Inc.,
Whitington Homes and Services for Children and Families,
Youth For Christ of Northern Indiana,YWCA Northeast Indiana Inc.