2007-12-31 13:31:53 · 7 answers · asked by Christopher V 1 in Business & Finance ➔ Taxes ➔ United States
No, you will not get ALL the money back. In fact you won't get any of it back unless you qualify to itemize deductions instead of taking the standard deduction. Even with itemization you only get a partial deduction based on your adjusted gross income and your % tax bracket.
2007-12-31 13:42:08 · answer #1 · answered by sursumcorda 6 · 0⤊ 0⤋
Your tax deduction would be based on your tax rate and if you itemize on your return.
If you do not itemize, you get no tax benefit.
If you do itemize, then you would get a portion of the deduction based on your tax rate. Say you're in the 25% tax bracket. You would only get 25% of the tax benefit.
2008-01-01 13:19:18 · answer #2 · answered by MrMojo1 5 · 0⤊ 0⤋
No, you don't get it all back - it's a deduction, not a credit, which means that you won't pay tax on that much of your income. And you can only get any tax benefit from a contribution if you itemize.
An example: if you are single, in a 15% bracket, have enough deductions already to itemize not counting the contribution, and donate $200, you'd save $30 on your taxes.
2007-12-31 22:23:58 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
In a word, NO.
IF you itemize you get a deduction for charitable donations. That reduces your taxable income. If you're in a 25% tax bracket, you'll get a reduction in your tax equal to 25% of the contributions. If you don't itemize, you'll get no benefit at all.
2007-12-31 21:40:16 · answer #4 · answered by Bostonian In MO 7 · 2⤊ 0⤋
You won't get it all back. This would probably be a deduction, meaning that you can deduct the amount you donate from the total taxable income. That means that you don't pay taxes on the money you donate. (Assuming you're in the US, of course)
Say you earned $10,000 this year, and you donate $1000 to the Canadian/American Singing Hobos. If your tax rate is 10%, you'd pay taxes only on $9000, and you'd pay $900 in taxes. If you had not donated the money, you'd pay 10% on $10,000, or $1000 in taxes. So in effect that $1000 donation only cost you $900 once you factor in the tax savings.
2007-12-31 21:38:48 · answer #5 · answered by Ralfcoder 7 · 0⤊ 0⤋
It depends.
First of all, you can only deduct if it your Schedule A deductions are greater than your standard deduction. This means that you probably also have a mortgage, pay state income tax and property tax.
If you don't, then the standard deduction is greater, and you can't reduce the amount of your donation from your income.
BTW, that's what the deduction means - if you make $100,000 and give $1,000, then your income that you're taxed on is $99,000 (high level example only showing the impact of the donation). So your tax savings is only the difference in tax on $100k and $99k, not the whole $1000,
2007-12-31 21:38:05 · answer #6 · answered by Anonymous · 1⤊ 0⤋
only to the extent of your marginal tax bracket. If you are in the 28% tax bracket - you will get tax credit on 28% of the dedection.
2007-12-31 21:34:55 · answer #7 · answered by Ernie 5 · 0⤊ 0⤋