If you donate to a charity do you get the money back when you write it off or is that subtracted from your earned income? Please help!!
2007-06-11 10:16:59 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If you itemize your deductions, it is an itemized deduction so ends up reducing your income that's used to figure your taxes, so you'd pay less taxes. The amount your taxes would be reduced could be as much as the donation times the percent that's your tax bracket.
If you take the standard deduction, then contributions have no effect on the tax you pay.
2007-06-11 10:42:54 · answer #1 · answered by Judy 7 · 3⤊ 0⤋
It is subtracted from your income if you itemize.
If you do not have enough to itemize, a charitible donation doesn't do you any good at tax time. If it is a good charity, give anyway. Just don't expect a big tax benefit.
2007-06-11 10:29:02 · answer #2 · answered by Wayne Z 7 · 3⤊ 0⤋
It is subtracted from your earnings (there are some limitations).
2007-06-11 10:19:35 · answer #3 · answered by Chris 2 · 1⤊ 0⤋
IT IS NOT ACTUALLY TAKEN OFF OF YOUR EARNED INCOME, HOWEVER IT REDUCES YOUR TAXABLE INCOME...AND IT USUALLY IS RELEVANT IN THE EVENT THAT YOU ARE ITEMIZING
2007-06-11 10:54:38 · answer #4 · answered by kay 2 · 1⤊ 1⤋