Question:

If I don't pay taxes meaning I only get refunds, will there be a benefit in making a tax deductible donation?

by  |  earlier

0 LIKES UnLike

I mean will it make the refund larger or something like that? Thanks.

 Tags:

   Report

8 ANSWERS


  1. Do you truly not pay taxes?  Some people think that since they're getting a refund, they "didn't have to pay any taxes."  The government takes money from you all year long through payroll deductions.  If you gave them too much, they give some of it back at the end of the year as a "refund," but chances are they're not giving it ALL back, and thus you are indeed "paying taxes."

    You'll pay less taxes (and get a larger refund) if you make a charitable contribution, but that doesn't mean you'll come out ahead.  Just using meaningless numbers for an example, you may make a $100 contribution to a charity, but that may decrease your taxes by only $80; thus you come out $20 behind.

    So why make charitable contributions?  Well, they are "charity," and that's a good thing (assuming it's a good charity, and some really are scams).  And also in a way, you're managing to make a $100 contribution to charity and it's only costing you $20.


  2. You can only deduct donations if you itemize. In order for itemizing to truly benefit you,you need to be able to beat the standard deduction. It is really hard to do unless  you have mortgage interest, property taxes, medical bills, and job expenses.


  3. no, it will have no effect on your refund. If you owed taxes, the charitable contribution would drop the amount you owe in taxes. Since you don't owe anything to begin with, it will have no effect at all.

  4. It might make the refund larger, IF you don't get everything refunded that you paid in, and IF you itemize.  Otherwise, no, no tax benefit.

  5. Financially, no... but spiritually, no.  

  6. I hope not.

  7. You can still pay taxes and get a refund. The benefit of the charitable contribution will only come if you itemize your deductions. If you do itemize your best case scenario is that you'd be "routing" funds to a charitable organization of your choice rather than the government. For most individuals your refund is pretty much limited to federal taxes withheld by your employer, so pay close attention to this number if you do decide to contribute to charity.

  8. Do you itemize?

    Do you actually pay taxes?  (That is, do you get back most, but not all of your withholdign?)

    If you don't itemize, your charitable donations won't reduce your taxable income any.

Question Stats

Latest activity: earlier.
This question has 8 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.