Yes it will reduce your taxes by a little, but not nearly by how much you had to donate, am i right?
Say my income was 20,000, i donated 2,000, and if the rate was 25% my taxes, which normally would be 5,000, would become 4500. I have paid 2,000 to get 500 off. Why do people do tax deductible things?
2006-10-13 09:36:59 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
Basically just to save money and give something to a charity.
2006-10-13 09:38:07 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Most don't do it for the deduction. If you have enough for yourself, giving away $2,000 is a good thing to do. Allowing you to deduct that from your income and reduce your taxes is a small incentive. Believe it or not, there are millions of generous Americans who give away money for no reason that benefits them personally.
2006-10-13 09:46:05 · answer #2 · answered by united9198 7 · 1⤊ 0⤋
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2006-10-14 02:41:15 · answer #3 · answered by stock.geek 2 · 0⤊ 0⤋
the reason being is quite simple, who do you want your money to go to? the gov't, or an organization that you feel your money would help in their cause. Seeing as you're going to be taxed anyway, giving less to the gov't is always a good thing.
2006-10-13 09:44:14 · answer #4 · answered by Anonymous · 0⤊ 1⤋