Deductions/Charitable Donations

[rvijay786]

Hi,

Me and my wife support an organziation each year. We plan to donate $5000 for this year.  our total family  income is around 250k. Please let me know if we can donate such amount in a year.

If we donate such amount, what kind of benifit will i get in 2019 taxes.

Thanks.

[Critter]

First there is no limitation on how much you can give ... only that you are limited to 50% of your income for the Sch A deduction.   Next, how it will affect your return is impossible to say without a lot more info  however you will need to itemize deductions to see any benefit. 

[xmasbaby0]

Unless the total of all of your itemized deductions -- including charitable donations -- exceeds your 2019 standard deduction, you will not see any effect on your tax due or refund.  With the increased standard deductions that began with the new tax laws, it is much harder for many people to see any effect from itemized deductions.

Many taxpayers are surprised in 2019 because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact.

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, for example, must meet a threshold that is 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.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

2019 Standard Deduction Amounts

Single                                    $12,200   (+ $1650 65 or older)

Married Filing Separately  $12,200   (+ $1650 if 65 or older)

Married Filing Jointly         $24,400   (+ $1300 for each spouse 65 or older)

Head of Household           $18,350  (+ $1650 for 65 or older)

[Carl]

Two things here, which you are probably already aware of

1) For a donation to be deductible, that donation must be to a qualified charitable organization as defined by the IRS. Use the IRS tool at https://www.irs.gov/newsroom/taxpayers-can-use-irs-select-check-tool-before-donating-on-giving-tuesd... to make sure the organization you're donating to is a qualified charity, and that their tax exempt status has not been revoked or suspended for the tax year in which you desire to make the donation.

2) Qualified charities fall into two basic categories. Either their a 50% organization or a 30% organization. With a 50% organization only 50% of your contribution is deductible from your income. Ditto for 30% organizations too. The percentage you're allowed to claim/deduct can also be affected by your total income (AGI) as well as the actual amount donated, and a few other factors.