2007-09-07 11:26:05 · 10 answers · asked by jeffdroling 2 in Business & Finance ➔ Taxes ➔ United States
No - the way deductions work is, is it is like you did not earn $100, so the amount you are taxed is reduced by $100
Example:
You earned $10,000
You donate $ 100
The amount taxed = $9,900
Oh, and that only applies if the amount of tax deductions you apply for exceeds the "standard deduction" of something like $5150 that everyone gets regardless (vaires on filing method).
Sorry, but that is the way the cookie crumples...
2007-09-07 11:36:05 · answer #1 · answered by Christopher F 2 · 1⤊ 4⤋
No. If you itemize, you get $100 off your taxable income, which means that you pay the same tax as if you had made $100 less. You would typically save $15-$28, depending on your tax bracket. If you take the standard deduction, the donation does not reduce your taxes at all.
2007-09-07 11:31:51 · answer #2 · answered by StephenWeinstein 7 · 3⤊ 1⤋
No, definitely not.
If you don't itemize, or if you have no tax liability for the year, then you get no tax benefit from the donation. If you itemize, and you do have tax liability for the year, then you get a tax benefit that might be as much as the donation times your tax bracket. Translation: If your tax bracket is 15%, your maximum tax savings on a $100 donation would be $15.
2007-09-07 15:00:35 · answer #3 · answered by Judy 7 · 0⤊ 1⤋
Only if you itemize! And it's not really $100 off the taxes you owe, but it's $100 off the amount you pay the taxes on.
2007-09-07 13:08:57 · answer #4 · answered by Rapunzel XVIII 5 · 1⤊ 1⤋
If the charity is is a 501-C3 Non-profit and they provide you with a receipt, yes it is deductible. However, if you file the 1040 Short form, this does not apply. You must itemize your taxes inorder to take the deduction.
2007-09-07 11:33:52 · answer #5 · answered by sosezshe 4 · 4⤊ 0⤋
some of the answers are pretty close but what you will have is an adjustment this will be about equal to 25% or $25.00, however you might not want this as the standard deduction is a lot more than the $25.00. I file the long form (1040) every year and try as I might the standard deduction is always greater, I like the idea of a federal sales tax and doing away with income taxes all together
2007-09-07 11:40:39 · answer #6 · answered by ffperki 6 · 0⤊ 4⤋
No, basically you get to deduct 100 dollars from your income and pay taxes on less income.
Wow, a bunch of misinformants have visited this question and thumbs-downed some proper answers. Yes, you must itemize to get a tax credit for charitible donations.
It also appears that pojo, you know not of what you speak, even when filing a 1040EZ, you still get the standard deduction, not "no deduction" as you state. I would be willing to gamble that Lance (and myself) have been filing our taxes longer than you have been alive.
2007-09-07 11:32:17 · answer #7 · answered by ©2009 7 · 1⤊ 4⤋
No, you may get no deduction at all if you can not itemize your deductions on Sch A of the 1040.
Added
Lance please stop giving tax advice, you know not of which you speak by a long shot!
2007-09-07 11:30:42 · answer #8 · answered by Anonymous · 2⤊ 1⤋
No. You deduct 100 dollars from your earned income total (the dollar amount you will be taxed on). So let's say your ''total earned income'' is 5000 dollars. You deduct the charitable contribution of 100 dollars making it 4900. You now must pay taxes on that 4900 dollars.
2007-09-07 11:33:44 · answer #9 · answered by Anonymous · 1⤊ 7⤋
No. It depends on how much you make a year. Check out the source.
2007-09-07 11:31:50 · answer #10 · answered by cjcourt 4 · 0⤊ 6⤋