Why do people donate to charity around tax time, what are the benefits?

Question

I don't understand why people donate to get credit on their taxes. Wouldn't it make more sense to say save that $250-1k and use that on paying taxes as apposed to giving it away for a tax break? What are the benefits of such a contribution. I've never had to pay into my taxes, but if I can find a way to get more back, ie. donations or maxing out my IRA I'll do that. I want to stiff the IRS for everything they've been taking from me, any idea's, (lets keep this gray and semi-legal)

Answer 1

Making a charitable donation (or spending money on anything else that is deductible) just to get a tax deduction is dumb. Contrary to what another respondent claims, it's a deduction, not a credit. They reduce your taxable income IF you itemize so if you're in a 25% tax bracket you'll save $25.00 in taxes for each $100.00 that you donate. I donate for the good that it does, not for the tax deduction. At best, the deduction allows me to be a bit more generous.

Answer 2

People often donate around tax time because it's their last chance to get a tax break that year from the donation.

You're right, you don't save on taxes the entire amount that you donate. Most of the donation still comes out of your pocket. People donate to charities because they feel they are worthwhile causes, and feel they should share some of what they have.

Answer 3

You can donate items to IRS recognized charities and claim a tax deduction only if you are able to itemize your deductions on a Schedule A which is attached to a 1040 form. If your itemized deductions do not exceed your standard deduction,which is based on your filing status, then you can not take the charities donation tax deductions.

Answer 4

by making donations you are able to use them as a tax credit. I never have to pay on my taxes either but I do use my donations to get more back every year.

Answer 5

u cant write it off