Comment on How can I determine how much to contribute to charity to reduce US federal taxes?
BombOmOm@lemmy.world 2 weeks ago
If you itemize deductions, whatever you donate will reduce your taxable income by the same amount. So, if you have $50,000 in taxable income and donate $1,000, that will now be $49,000 in taxable income.
The 2024 tax rates for a single (not married filing jointly) individual are as follows:
In this case, that would come completely out of the 22% bracket, ie, your $1,000 in donations will reduce your tax burden by $220.
Keep in mind the standard deduction for a single individual is $14,600. You can take this instead of itemizing deductions as described above, and it works the same as if you had itemized deductions up to that value. If you have deductions less than that value, take the standard deduction; if they are greater, itemize deductions.
undefined@lemmy.hogru.ch 2 weeks ago
Doing research I think I’ve got my head around it. I’ll probably talk to a tax accountant regardless, but this information seems to be correct.