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GiftLaw Pro Home   >  Chapter 1 - Taxation and Giving  >  1.1 Income Tax Deductions  >  1.1.6 State Tax Deductions and Credits  >  Basic Quiz

Basic Quiz - 1.1.6 State Tax Deductions and Credits

1. The benefit of a charitable deduction is that it reduces the amount of income subject to income tax.
           
2. Compliance states permit taxpayers to take half the deduction for charitable gifts that are taken against their federal taxable income.
           
3. Restricted deduction states are only those that use a completely different method from the IRS.
           
4. Only Connecticut imposes an income tax but does not permit a deduction for charitable gifts.
           
5. A state tax credit of 20% is generally treated as "quid pro quo."
           
6. A tax credit reduces dollar-for-dollar the amount of a taxpayer's tax liability.
           
7. Most states that provide for charitable tax credits do not specify particular causes or organizations to which the donation must be made for the credit to apply.
           
8. Conservation credits are provided to donor's who transfer tangible personal property to qualified charitable organizations.
           
9. Every state that offers charitable income tax credits for conservation easements allows any unused credit to be carried-forward for some period of years.
           
10. Credits in Montana and North Dakota for contributions to planned gifts are limited to 40% of the present value of the gift portion of a qualified planned gift such as a charitable remainder trust, a charitable gift annuity or a pooled income fund, with a maximum cap.