Question:

If I donate 5400. to my local charity, how much of a tax deduction will I get?

by Guest62383  |  earlier

0 LIKES UnLike

How much should I expect to get from a tax deduction?

 Tags:

   Report

2 ANSWERS


  1. It depends on your marginal tax rate.  It would run somewhere between 10 and 35%, plus your state rate.


  2. Assuming it's a 501(c)3 charity, you'd get the whole $5400 as a deduction.  That's the good news.

    But it only affects your tax bill when your total itemized deductions is over the limit for your filing status, so you can itemize.

    If you are single, your standard deduction this year is $5450 and you are most likely in a 15% tax bracket.  So if your total itemized deductions are $7000 including the donation, your tax savings from the donation would be (7000 - 5450) times .15, or $232.50.

    If your donation is a car, there are special rules - your deduction isn't the book value, it's what the charity sells the car for which is usually far less than book value.

Question Stats

Latest activity: earlier.
This question has 2 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.
Unanswered Questions