I’m confused is it 50% of your cash donation to charity that is deductible or is it only up to 50% of your income that is deductible?
Someone please clarify.
Contributions to non-profits are only deductible if they are 501(c)3 charitable organizations.
A donation to a charity gives you a deduction, but the tax savings is at most the amount of the contribution times your tax bracket. If you are in a 15% bracket and donate $1000 to an eligible organization, your tax savings is at most $150, so at least $850 of the donation comes out of your pocket. If you don’t itemize, there is no tax
April 26th, 2010 at 11:54 pm
You can deduct 100% of the donations you have receipts for, but only if you itemize. And the most you can deduct even with receipts is 50% of your income – anything over that is carried over to the next year.
References :
April 27th, 2010 at 12:24 am
Contributions to non-profits are only deductible if they are 501(c)3 charitable organizations.
A donation to a charity gives you a deduction, but the tax savings is at most the amount of the contribution times your tax bracket. If you are in a 15% bracket and donate $1000 to an eligible organization, your tax savings is at most $150, so at least $850 of the donation comes out of your pocket. If you don’t itemize, there is no tax
References :
http://www.taxdeductionsbenefit.com/