Just wondering how much money, an amount or percentage that I can donate to charities instead of just paying taxes with my money? If you do not know for sure I will just consult with my tax advisor…Thanks, Shawna
Tags: advisor, amount, charities, donate, how much money, Instead, money, much, paying, paying taxes, percentage, Shawna, tax, tax advisor, taxes
You can donate up to 50% of your income.
You do not want to make donations just to save on taxes. Assuming that you are in the 25% tax bracket, a $1000 donation to a charity nets you only $250 in Federal tax savings and that is only if you itemize.
best to consult your tax accountant, IRS regulations change year to year, what was allowed last year may not be allowed this year.
You don’t donate money “instead of” paying taxes with it. If you itemize, a qualified charitable deduction is an itemized deduction, but your tax savings is at most the amount of the donation times your tax bracket, not the whole contribution. So for example if you donate $1000 and your tax bracket is 15%, your maximum tax savings would be $150.
The donation is subtracted from your income before calculating your tax, not subtracted from your tax.
No more than 50% of your income. Keep in mind that you’ll get no more than 35% of your donation back at tax time. For most taxpayers, 15% or 25% is tops.
If you’re donating money to try and save on taxes, don’t! You’ll be much worse off in the end. You NEVER come out ahead by spending money to save it on taxes. The tax consequences of anything you are planning to do should be factored into your decision but must NEVER be the primary reason that you act.
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