Taxes and charity deductions
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  1. #1
    Registered User Mochashello's Avatar
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    Default Taxes and charity deductions

    In my quest to slash the budget, I am reviewing both my tithe and my child sponsoring through Compassion Int'l. Besides the internal wrestling, I have a new concern... taxes. What will a $1,000 deduction in charitable contributions do to our tax results? We usually border between owing a little or getting a little at the end of the tax year. Currently our YTD giving for our church is $500 less than last year with 3 months left to go. And our child sponsoring is $480 less (last year we had 2 children to sponsor but one of them graduated out of the program and this year we've only had the one). So if I stop contributing to both of these right now, our write offs are immediately down $1K.

    Any comments?

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    Registered User shortstack's Avatar
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    You have to do what I call funky accountant math to come up with your result lol It depends on what tax bracket and at what percentage you are taxed as to the answer of your question. The $1000 you donated will be taken off of your gross income. If you are in a %27 tax bracket (just a stab as to where you are) that deduction means $270 taken off of your taxes to you.

    Andrea
    We are debt free!!!

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