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Because you're better off taking the standard deduction so you have no tax incentive to make charitable contributions.
by cozzyd 4y ago
Because you're better off taking the standard deduction so you have no tax incentive to make charitable contributions.
- lotsofpulp 4y agoYes, that I knew. I would not summarize that as > only high-income people can make tax-free charitable contributions
- amluto 4y agoOkay, so you can donate $100 to charity, feel warm and fuzzy because it’s tax-free or however you want to think about it, and pay exactly the same amount of tax as if you didn’t give the gift.
- op00to 4y agoYes, that's how the standard deduction works.
- cduzz 4y agoRight. You can also create a charity, which you run, and donate millions of dollars to it, and write that off against your taxes as a charitable donation. Then, because you run that charity, you can still spend the money (mostly) as you please.
- amluto 4y agoExactly. But the point here is this is only available to people who wish to donate more than about $13k per year.