No, that’s not how it works. PLEASE read the article or poke around the IRS website on your own. It does not count against your income, it counts directly against the taxable amount you owe.
How to Calculate the Tax Benefits of Donating toa Nonprofit
So how much do you get back with tax deductible donations? You can determine your savings from making charitable donations withthis straightforward calculation. Multiply your marginal tax rate by the value of your contributions.
For example, if your rate is 32% and you contributed $10,000in cash, goods or both, you’ll end up saving $3,200 at tax time.
Is that dumbed down enough for you? You give 10k, you get back 3.2k, your donation cost you 6.8k at the end of the day.
If all of it goes to salary it becomes taxable income for the person getting it so they pay taxes on that 10k.
It’s why the people donating 130m got 38m back and if you had taken the time to read the article you would have realized that the 38m was spread over multiple years because the government doesn’t just hand money, they reduce your taxable income to zero and then the rest carries over to the next year until you reach zero dollars left of your donation. In their case the 130m donation still cost them 92m compared to selling it to a private party for the same price!
The IRS granted the foundation tax-exempt status. That allowed the Johnsons tocollect more than $38 million in tax savings from the estate over five years, confidential tax records show.
No, that’s not how it works. PLEASE read the article or poke around the IRS website on your own. It does not count against your income, it counts directly against the taxable amount you owe.
How about YOU check the IRS website
https://www.irs.gov/credits-and-deductions-for-individuals#:~:text=A deduction is an amount,them in the right forms.
https://marshalljones.com/how-much-do-charitable-donations-reduce-taxes/
How to Calculate the Tax Benefits of Donating to a NonprofitSo how much do you get back with tax deductible donations? You can determine your savings from making charitable donations with this straightforward calculation. Multiply your marginal tax rate by the value of your contributions.For example, if your rate is 32% and you contributed $10,000 in cash, goods or both, you’ll end up saving $3,200 at tax time.Is that dumbed down enough for you? You give 10k, you get back 3.2k, your donation cost you 6.8k at the end of the day.
If all of it goes to salary it becomes taxable income for the person getting it so they pay taxes on that 10k.
It’s why the people donating 130m got 38m back and if you had taken the time to read the article you would have realized that the 38m was spread over multiple years because the government doesn’t just hand money, they reduce your taxable income to zero and then the rest carries over to the next year until you reach zero dollars left of your donation. In their case the 130m donation still cost them 92m compared to selling it to a private party for the same price!
The IRS granted the foundation tax-exempt status. That allowed the Johnsons to collect more than $38 million in tax savings from the estate over five years, confidential tax records show.Well fuck me