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Charitable donations not reducing tax due, why????????????????????????

 
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7 Replies

Charitable donations not reducing tax due, why????????????????????????

A charitable donation almost never changes your tax due or refund all by itself.  First, your donation does not count "dollar for dollar"--it is calculated by a percentage based on your tax bracket.  You need a LOT of other itemized deductions like mortgage interest or property taxes, medical expense, etc. to itemize and exceed your standard deduction.

STANDARD DEDUCTION

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, job-related expenses, casualty and theft losses, for example, must meet thresholds that are pretty hard to reach.  The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Here are the Standard Deductions for 2017

Your standard deduction lowers your taxable income.  It is not a refund 

2017 Standard Deductions

Single    $6350  (65 or older + $1550)

Married Filing Separately   $6350  (65 or older +  $1250)

Married Filing Jointly           $12,700  (65 or older + $1250@)

Head of Household $9350  (65 or older + $1550)

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Charitable donations not reducing tax due, why????????????????????????

and TT Free does not even include Schedule A.

Charitable donations not reducing tax due, why????????????????????????

That being said, you are posting from the Free version of TurboTax which does not support itemized deductions.  In order to itemize your deductions, you need an upgraded version of TT such as Deluxe (or higher).  If you do not have enough deductions to itemize, then your donation
will not affect your refund or tax due.  You will just receive the standard deduction.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Charitable donations not reducing tax due, why????????????????????????

I am using the home & business version

Charitable donations not reducing tax due, why????????????????????????

Your question was posted from Free Edition, so that is what it looks like to us.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Charitable donations not reducing tax due, why????????????????????????

OP has a second thread going on this.

Charitable donations not reducing tax due, why????????????????????????

@SweetieJean I have got to hand it to you, SJ.  You are much better at noticing the usernames than I am.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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