The standard deduction is IMO a load of crap. With a large standard deduction, only high-income people can make tax-deductible charitable contributions.
The right way to do it would be to make the standard and itemized deductions additive.
The right way to do it would be to make the standard and itemized deductions additive.
I thought all charity is deductible from taxable income.
> only high-income people can make tax-free charitable contributions
Then, because you run that charity, you can still spend the money (mostly) as you please.
Last year you could deduct up to $300 in donations on top of the standard deduction, but I didn’t see it this year.
Charitable donations aren’t the only itemizable deductions.
However, charity is probably the most well-known deduction that you can control (in contrast to stuff like state taxes, which are more or less predetermined). And even among the deductions you control, those deductions require some spending. Can a non-rich person really spend enough to itemize beyond the standardized deduction? If you know how, please let me know because I’ve never gotten close to the standard by itemizing! Even when I’ve had large purchases to compute sales tax for I’m still far away.
Otherwise, it’s pretty clear that, generally speaking, charitable donations aren’t helpful for reducing one’s taxes. I’m sure people donate because they want to, but the tax benefits are not part of the calculus.
Really no charity is deductible except rich people charity.
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.