Replys

1. 

   Aaron - March 20th, 2010 at 12:57 am

   It depends on your other deductions. If you’re single, you need to come up with $5000 in deductions (mortgage interest, charity, taxes paid, etc). If you don’t meet this requirement, there is no tax benefit to donate. There is still the moral benefits of donating, though.
   You have to remember that donating does not save you money. The deduction that you get saves you the tax portion of the donation. If you donate $500 and your rate is 20%, you get a $100 tax benefit, but since you paid the $500, the net is -$400. You don’t donate for the break, you donate b/c it is a good thing to do, and one benefit is you lessen your tax burden.
2. 

   keepitreal - March 20th, 2010 at 12:57 am

   Depends on your tax situation. If you are filing 1040-EZ, then you are taking the standard deduction (based on your adjusted gross) and not itemizing your donations. Hence, the amount (or percentage) you donate to charity is not relevant. If you are filing 1040, Schedule A, your are itemizing deductions, and in that case, any deduction would be relevant and be considered a deduction. If you want a specific calculation, figure your standard deduction based on your adjusted gross (see tax tables). Then figure out if you have donated to charity in excess of the standard deduction.
3. 

   amsassard - March 20th, 2010 at 12:57 am

   The most common itemized deductions include:
   Mortgage Interest
   Gifts to Charity
   State/Local Taxes

   Total them up…to itemize, you need over $5,000 of deductions if your single, $10,000 if filing Joint, and 7,300 if Head of Household.

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