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posted Sep 29, 2020 10:10:58 AM

Donating to a 503c nonprofit

I only make $20000 a year, im in college, and run a side airbnb business. I have been helping volunteer at a nonprofit and I was wondering if I donated money or mileage on my vehicle to support them would I be able to write it off of my taxes? Will it even matter if its likely going to be much less that I can give them than my standard deduction?

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2 Replies
Level 15
Sep 29, 2020 10:26:15 AM

At your income level, you probably won't receive a tax break from donating to charity.  (That doesn't mean you shouldn't donate.)  If you are single, then the total of your itemized deductions (state income tax or sales tax, plus mortgage interest and property taxes, plus gifts to charity) would have to be more than $12,500 before you would see a reduction in your income tax from making gifts to charity. 

Level 15
Sep 29, 2020 11:58:05 AM

For 2020 only, you can deduct up to $300 of charitable contributions even if you don't itemize deductions. This deduction is in addition to your standard deduction. You are probably in the 10% tax bracket, so a deduction of $300 would save you $30 in tax.