MILFORD —Housing Opportunities of Warsaw, a local not-for-profit organization that assists in improving the housing conditions of low-income households in Kosciusko County, has issued a reminder about tax credits for its Neighborhood Assistance Program.
Those interested in these credits for their 2019 Indiana state taxes must purchase the credits by Dec. 31. All credits purchased on or after Jan. 1 will go toward your 2020 Indiana state taxes.
Tax credits help reduce the amount of state tax due. Each credit is valued at 50 percent of the amount of their purchase (e.g. a $250 credit for a $500 purchase). The minimum purchase is $100.
As opposed to a deduction, these credits will take away from the total amount of state tax owed, rather than just reducing the taxable income. For example, if you made $100,000 per year and had $10,000 in deductions, your taxable income would be $90,000. If you were taxed at 25 percent, you would be taxed $22,500.
If you made $100,000 per year with no deductions, your initial taxes would sit at $25,000. However, if you purchased a $10,000 tax credit, you would owe $15,000.
“This NAP credit program is really a great opportunity for both HOW and taxpayers alike,” said Pam Kennedy, executive Director of HOW. “Not only do taxpayers get to save money on their taxes, but they also get to give to an organization that gives back to local homeowners in a big way.”
“All funding we receive through this tax credit program goes directly towards helping hardworking homeowners who really need housing assistance,” said Kennedy. “It’s rare for a nonprofit to have a chance to raise funds in a way that benefits both the donor and the recipient program directly; it’s a unique idea that we really want to make the most of.”
To contact HOW about purchasing these tax credits, or if you have any other questions, you can reach Program Manager Alaister McFarren at (574) 269-7641, ext. 106 or via email at [email protected]