The OMRF Tax Credit – Frequently Asked Questions
These answers are provided for general information purposes only. OMRF cannot give personal tax advice; please consult a qualified tax professional for your individual tax needs and to determine the effect a donation to OMRF will have upon your individual tax return. For more information about the tax credit or OMRF, please don’t hesitate to call us at (405) 271-7400.
What is a tax credit?
A tax credit is an offset against the amount of taxes you owe. If you have a tax credit in the amount of $100, that means that your income taxes will be lowered by $100.
How is that different from a deduction?
A tax credit is an offset against the taxes you owe, while a deduction is an offset against your taxable income. The bottom line: a tax credit saves you more money than a deduction.
What is the OMRF Donor Tax Credit?
Under Oklahoma law, anyone who makes a tax-deductible donation to the Oklahoma Medical Research Foundation may claim a tax credit equal to half the amount of their donation (for gifts up to $2,000 for individuals and businesses and $4,000 for joint filers) on their Oklahoma state income tax return. This tax credit is known technically as the “Biomedical Research Tax Credit.”
Who can claim the Biomedical Research Tax Credit?
Any Oklahoma taxpayer (including individuals, corporations, estates, trusts and partnerships) who makes a donation directly to OMRF may claim this credit on their state income tax return.
Will I be able to claim this tax credit on my federal income tax return?
No. However, you may still claim your donation to OMRF as a tax deduction on your federal return just as you do any other charitable contribution.
How do I claim the Biomedical Research Tax Credit on my Oklahoma income tax return?
Enter the amount of the total credit on the appropriate line, Credit for Biomedical Research Contribution, of Oklahoma state income tax Form 511CR (“Other Credits Form”) and provide a copy of your receipt or canceled check with your state tax return.
You will also enter the total amount of the credit (not to exceed $1,000 for individuals and businesses or $2,000 for married couples filing jointly) on the appropriate line on the Oklahoma State Income Tax Form 511 (or 512 for corporations).
The Oklahoma Tax Commission usually makes available the tax forms for the current filing year near the first of the year. Please check its website, www.tax.ok.gov, for copies of the forms (511, 511CR and 512). Please note, however, that you CANNOT claim any tax credit using OkTAP, the online filing resource provided by the Oklahoma Tax Commission, as that system does not accept Form 511CR. Other electronic programs may be used – if they include Form 511CR.
Do I need to submit a receipt from OMRF along with my return?
Yes, if you are filing a traditional paper return, a copy of the canceled check or OMRF receipt must be included. If you file your taxes electronically, you also should keep your receipt, as the Oklahoma Tax Commission may require a copy.
At the end of January, OMRF mails a receipt of all prior calendar year donations, totaling $250 or greater, to donors. This should aid you in completing your return. If you do not receive one, please call (405) 271-7400.
If I file my taxes electronically, how do I claim this credit?
Whatever electronic filing program you use should offer you an opportunity to claim this tax credit, using the forms described above. Please note, however, that you CANNOT claim any tax credit using OkTAP, the online filing resource provided by the Oklahoma Tax Commission, as that system does not accept Form 511CR. Other electronic programs may be used – if they include Form 511CR
Do I need to itemize my taxes to claim this credit?
No. Even if you take the standard deduction, you may claim this credit.
How large will my tax credit be?
Your tax credit will be equal to half the amount of your donation to OMRF, up to a maximum tax credit of $1,000 for individuals and businesses, $2,000 for taxpayers filing jointly. That means that a $100 gift earns you a tax credit of $50, while a $2,000 gift yields a credit of $1,000.
Can I claim tax credits on multiple donations made throughout the year?
Yes, for purposes of this credit, you may combine any number of donations up to a cumulative annual total of $2,000 for individual or business taxpayers or $4,000 for taxpayers filing a joint return.
What if I designated my gift(s) to OMRF through a different organization such as United Way?
By law, only gifts paid directly to OMRF receive a receipt from OMRF and are entitled to be claimed for this tax credit. If you gave through another tax-exempt charitable entity, that donation should still qualify for a charitable deduction on your state and federal tax returns. However, you will not be able to claim the Biomedical Tax Credit for such gifts.
Can I claim the credit on a gift of stock or other securities?
Yes, gifts of stock and other securities also qualify for the credit. In fact, under some circumstances, gifts of appreciated securities can create even greater tax advantages than gifts of cash. If you would like more information about ways to save on both your income tax and capital gains tax, please call OMRF at (405) 271-7400.
Are charitable IRA rollover gifts to OMRF eligible for the tax credit?
Yes. OMRF is a qualified public charity under the charitable IRA rollover provisions enacted by the federal government, and the Oklahoma Tax Commission indicated that these gifts are eligible for the Biomedical Research Tax Credit.
Further information about the Biomedical Research Tax Credit:
A credit is allowed to any taxpayer who makes a donation to a qualified independent biomedical research institute. The credit is 50% of the amount donated, but may not exceed $1,000 ($2,000 for a married filing joint return). An “independent biomedical research institute” means an organization which is exempt from taxation under the Internal Revenue Code section 501(c)(3) whose primary focus is conducting peer-reviewed basic biomedical research. The organization shall have a board of directors, be able to accept grants in its own name, be an identifiable institute that has its own employees and administrative staff, and receive at least $15 million in National Institute of Health funding each year. Any credit allowed but not used will have a four year carryover provision. A copy of the canceled check or receipt must be provided as proof of the donation. 68 OS Sec. 2357.45 and Rule 710:50-15-113.