I am making more money this year then I have previously and I know part of that is going to be paying more taxes. I am pretty young (early 20’s) but I am pretty involved with some non-profits that I really care about and would love to get donations to. How much of that is tax deductible?
how much is "enough" deductions
If you don’t have enough deductions to itemize, none of them is deductible. If you itemize, you deduct all of your donations up to 50% of your AGI for the year. Your tax savings is the total deductions times your tax bracket. So if you donate $500 and are in a 15% bracket, your tax savings is $75.
April 20th, 2010 at 5:58 pm
Up to 50% of your income can be taken as a deduction in this year.
References :
April 20th, 2010 at 6:09 pm
If you don’t have enough deductions to itemize, none of them is deductible. If you itemize, you deduct all of your donations up to 50% of your AGI for the year. Your tax savings is the total deductions times your tax bracket. So if you donate $500 and are in a 15% bracket, your tax savings is $75.
References :