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How do you donate $15K if you’re not high income? If you donate $2500 nothing changes. You pay taxes on it. Really no charity is deductible except rich people
by skinnymuch 4y ago
How do you donate $15K if you’re not high income? If you donate $2500 nothing changes. You pay taxes on it.
Really no charity is deductible except rich people charity.
- op00to 4y agoWhy does this matter? A $100 deduction in income has a very, very, very small effect on your overall tax liability.
- cozzyd 4y agoSay you can afford to donate $x. If it's tax deductible, you can then afford to donate $x / (1-T) where T is your effective tax rate.
- skinnymuch 4y agoIf we look at the amount of money people earn, pay taxes on, and how wealthy they are, many patterns show up. Including rich people donating to avoid taxes and poor people without much income not being able to deduct $1K. Or $2K. Pick any number. $100 is the unimportant part. I changed the number to $2500 if that makes it easier. That does dilute the importance because a lot if not majority of the country can’t donate $2500 extra a year from their current budget and income.