The tax rebate you get is equal to the taxes you paid when the money was paid to you by your employer, you don’t get 100k back from the government by sending 100k to a charity!
Ok, let me do it again real slow.
Your employer pays you 200k/year, you pay 50k in taxes total, it’s deducted on every paycheck you get. At the end of the year there’s 150k left in your pockets.
Over the year you donate 100k to a charity, that reduces your total income from 200k to 100k, so what you owe in taxes is 20k instead (taxation isn’t a fixed %, it increases with your income so in NY you pay about 20k for 100k in total income and about 50k for 200k in total income) but you still paid taxes every two weeks based on your 200k salary, so you have 50k in your pockets at the end of the year (200k - 50k taxes - 100k donation).
Come tax season the government sends you a 30k check to compensate for the extra taxes that you paid, you have 80k left in your pockets after tax season (200k - 50k taxes - 100k donation + 30k tax rebate to compensate for the donation).
If the charity is yours and it pays you 100k the government adds it to your total income. So now you have 300k in total gross income and 100k in donations, so you’re taxed based on having made 200k in total that year after adjusting for tax deductible spendings (200k in base salary - 100k for the donation + 100k in extra salary from the donation coming back to you).
That’s 50k in taxes, you have 150k in your pockets, you just went the long way round to end up with the same thing.
They actually are just making shit up, just ignore them (or read all their comments for shits and giggles, but they have no idea what they are talking about)
You get back what you paid in taxes on that dollar, the government doesn’t give you back one dollar for every dollar you send to charity, that would be completely idiotic.
Try giving 100% of your income to charity and see how that goes. Hell, with the way you think it works why wouldn’t you just send all your savings to charity? You’re saying you’ll get the money back anyway, why not go a good thing while you’re at it? Heck, why not make it an infinite loop, give money charity, get it back, and it again, do it over and over again, infinite money glitch for the charity of your choice!
That’s cute how you’re putting words in my mouth and pretending to be a tax expert. Kinda funny that you’re a tax expert who doesn’t know what AGI means lol.
And then you pay taxes on that salary.
Of course. Still making $, though.
You’re not making more than if you had just kept that money in the first place.
Apparently your math is different than mine. I suggest you re-read what I wrote. How is collecting money as a charity admin not making more?
You take your regular job’s wage, send 100$ to your own charity so you collect 30$ back in tax deduction.
The charity gets 100$, you’re out 70$.
The charity then pays you 100$ in salary.
You’re up 30$ but you have to pay 30$ in taxes on that 100$, in the end you’re back to square one.
Taxes are paid on your total income no matter the source.
You skipped the entire part where I run the charity.
No, that’s the exact scenario I covered.
The tax rebate you get is equal to the taxes you paid when the money was paid to you by your employer, you don’t get 100k back from the government by sending 100k to a charity!
Ok, let me do it again real slow.
Your employer pays you 200k/year, you pay 50k in taxes total, it’s deducted on every paycheck you get. At the end of the year there’s 150k left in your pockets.
Over the year you donate 100k to a charity, that reduces your total income from 200k to 100k, so what you owe in taxes is 20k instead (taxation isn’t a fixed %, it increases with your income so in NY you pay about 20k for 100k in total income and about 50k for 200k in total income) but you still paid taxes every two weeks based on your 200k salary, so you have 50k in your pockets at the end of the year (200k - 50k taxes - 100k donation).
Come tax season the government sends you a 30k check to compensate for the extra taxes that you paid, you have 80k left in your pockets after tax season (200k - 50k taxes - 100k donation + 30k tax rebate to compensate for the donation).
If the charity is yours and it pays you 100k the government adds it to your total income. So now you have 300k in total gross income and 100k in donations, so you’re taxed based on having made 200k in total that year after adjusting for tax deductible spendings (200k in base salary - 100k for the donation + 100k in extra salary from the donation coming back to you).
That’s 50k in taxes, you have 150k in your pockets, you just went the long way round to end up with the same thing.
You don’t know how taxes work.
You’re also completely rearranging numbers in a meaningless way to make yourself right.
Show me your maths then if you know how they work and I don’t
Also I don’t see how I’m rearranging numbers in a meaningless way, I even break down the math for you.
I can see you’re active now, so, teach me please, show me where I’m wrong so I don’t make the same mistake again :)
They actually are just making shit up, just ignore them (or read all their comments for shits and giggles, but they have no idea what they are talking about)
Except you claim every dollar of your donation, not 30%?
You get back what you paid in taxes on that dollar, the government doesn’t give you back one dollar for every dollar you send to charity, that would be completely idiotic.
Try giving 100% of your income to charity and see how that goes. Hell, with the way you think it works why wouldn’t you just send all your savings to charity? You’re saying you’ll get the money back anyway, why not go a good thing while you’re at it? Heck, why not make it an infinite loop, give money charity, get it back, and it again, do it over and over again, infinite money glitch for the charity of your choice!
That’s cute how you’re putting words in my mouth and pretending to be a tax expert. Kinda funny that you’re a tax expert who doesn’t know what AGI means lol.
That’s exactly what you said
You give 100k to a charity, it’s used to pay the salary of an employee, 20% in taxes is paid on that, somehow the government is out 80k.
Well no buddy, the government is out the difference between what you had to pay in taxes on that 100k and the 20k in taxes the employee pays.