As you prepare for taxes this year, you undoubtedly will gather information necessary to possibly receive Deductions, as well as Credits. Both are incredibly important, but Credits are much more valuable. Deductions reduce what is taxed, which reduces tax liability. Credits reduce what is owed, reducing or completing eliminating payment due. Most people cannot itemize deductions on their Federal taxes because the Standard Deduction is so high ($31,500 for those married and filing jointly for the 2025 Tax Year.) The great news is that even if you can’t itemize deductions on your Federal taxes, you can still claim the 50% Tax Credit for Lutheran SGO gifts on your State taxes. What a blessing!

If you CAN itemize deductions on your Federal taxes, you can claim the amount not received as a State Tax Credit as a charitable contribution. Let’s say that you gave $2,000 to the Lutheran SGO and received your 50% tax credit, which would be $1,000. The remaining $1,000 of your gift can be claimed as a charitable contribution on your Federal taxes, which could lower your real out-of-pocket cost for the gift even more. The chart below illustrates this point as it relates to four sample Federal Tax Brackets.