How do charitable donation tax deductions work?
I am possibly moving across the country and am considering donating all my furniture and most of my belongings to Goodwill or the like as an option fo...
I am possibly moving across the country and am considering donating all my furniture and most of my belongings to Goodwill or the like as an option for getting rid of stuff. I make 38,287 a year, how much (value) would I have to donate in order to have it be tax-deductible?
Someone told me that unless I make above a certain amount of money that I can’t make charitable deductions, that deductions are only available to people in higher income brackets. Is this true?
Any website, (other than IRS) that explains this stuff in plain English?
anyone can make tax-deductible donations.
they work like this:
1) you make 10,000 per year (W2)
2) you donate 1,000 to charity
3) when you file your taxes, you get to subtract that 1,000 from the amount reported on your W2 (10,000).
so, instead of paying tax on 10k, you only pay tax on 9k.
the only complication is that in order to take advantage of the tax deduction, you have to itemize. if you just take the standard deductions, you won’t see any benefit from making a deductible donation. so, if the standard deduction is more than your itemized deductions would be, then you wouldn’t see any tax benefit.
but even if you don’t get a tax deduction, donating to charity is still a good thing to do. i hope your generosity doesn’t depend on your taxable income.