2006-09-30 14:17:03 · 14 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
It becomes a deduction. Only if you itemize though. It can be a help, but it depends on the gift, and the situation you are in. If you donate 200 worth of clothes, you can write it off as a deduction, just like your other deductions. It takes minus the charitable gift from your income total, which can put you in a lower tax bracket. You need receipts of course. I hope this helps.
2006-09-30 14:24:45 · answer #1 · answered by poisonivy4913 5 · 0⤊ 0⤋
It would be if it you "itemized" on your tax return. To "itemize" you fill out the "Schedule A" of your tax return. If the amount of your Schedule A is greater than the "standard deduction" you are allowed to take you should take the Scedule A amount. Now, how does giving to charity save on your taxes? The amount you give to charity is one of the items in the Schedule A. Usually, but not always, the people who itemize are the ones who pay a home mortgage. If you do not itemize, giving to charity will not help you on your taxes.
2006-09-30 21:34:22 · answer #2 · answered by Kathy R 2 · 0⤊ 0⤋
When you give to charity, you can deduct the gift from your income when you do your income taxes. There is a big IF, though. You must be able to itemize deductions on your taxes. Generally, if you own a home, you can itemize, because mortgage interest and real estate taxes are also deductable. You can find out if you can itemize deductions by going to www.irs.gov. It's loaded with intuitive features and searches to get you the right information to answer your question.
2006-09-30 21:35:08 · answer #3 · answered by boj12345 2 · 1⤊ 0⤋
If you are donating only for the tax deduction, don't. The value of the item is always more than the reduction in taxes. If you are donating anyway, charitable contributions are an itemized deduction on Schedule A of the 1040. If your itemized deductions do not exceed the standard deduction, you don't save on taxes.
2006-10-01 18:27:11 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
If you can verify that you actually donated specific amounts of money to charity (i.e. receipts or voided checks) then you can use that amount of money as a tax deductible write off if you file your taxes using the long form. Tax prep programs like Quicken will automatically prompt you to indicate amounts like write offs, etc. so it makes it much easier.
2006-09-30 21:25:10 · answer #5 · answered by ShouldBeWorking 6 · 0⤊ 0⤋
If you itemize, you can take the charitable donation as an itemized deduction. This means that your taxes are lowered by a percentage of your donation. The percentage depends on the tax bracket you're in.
If you don't itemize, then it doesn't change your taxes.
2006-10-01 00:19:38 · answer #6 · answered by Judy 7 · 0⤊ 0⤋
Whenever you donate money ask for a receipt or letter of confirmation. Take those documents and send them in on your tax filings. When you complete your taxes make sure to fill out the information on philanthropist activities (i.e. any donations or charitable actions). Give a brief description and a detailed report of whom you gave to.
2006-09-30 21:25:57 · answer #7 · answered by R.T.D. 2 · 0⤊ 0⤋
Your charitable contributions are tax deductable which takes away from your gross income which in turn puts you in a lower tax bracket depending on the amount of the contribution.
2006-09-30 21:25:42 · answer #8 · answered by miamac49616 4 · 0⤊ 0⤋
the charity is exemt to tax upto a limit from tax. you get a deduction from charity and claim expenditure on your return.
2006-10-01 00:31:13 · answer #9 · answered by sweettheif_420 1 · 0⤊ 0⤋
its a tax write off
2006-09-30 21:18:11 · answer #10 · answered by Mrs.Bossy 5 · 0⤊ 0⤋