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> If I donate to a nonprofit, itemize my deductions, and get a tax reduction based on my donation, am I not "evading" taxes? No. You're mixing up terms. That's
by adventured 8y ago
> If I donate to a nonprofit, itemize my deductions, and get a tax reduction based on my donation, am I not "evading" taxes?
No. You're mixing up terms. That's avoiding taxes. There's a critical distinction in the tax world between avoiding taxes and evading taxes. One is legal and common, one can send you to prison and get you a lifetime of close IRS scrutiny.
Simplified, evading means to not pay what you actually owe (what you should be paying). Avoiding means to use entirely legal means - such as deductions - to not owe the taxes in the first place. To evade taxes you always have to do something illegal. In avoiding taxes you should never break the law.
- seibelj 8y agoEmigrating to lower-tax countries is not illegal. So it's not tax evasion, correct? Anything I do that is legal cannot be tax evasion?