How much can we donate and write off? This year I'm hoping to donate more money to avoid paying as much. How do we figure that out based on our income?

[stephen-romero1]

I would rather donate money than pay taxes.

[rjs · Accepted solution]

For typical charities that solicit donations from the public, you can deduct charitable donations up to 50% of your Adjusted Gross Income (AGI). Donations to charity are an itemized deduction. In order to get any tax benefit from additional donations, your total itemized deductions have to be more than your standard deduction. Also, itemized deductions, including charitable donations, do not reduce the tax that you pay dollar-for-dollar. If you are in the 25% tax bracket, a $100 donation reduces your tax by $25.

[bwa]

This year I'm hoping to donate more money to avoid paying as much.

Not to suggest you avoid making contributions, but you can't save money by making a charitable contribution.  The reason is that you will pay more to the charity than you will save in taxes.  As an example, assume you are in a 25% marginal tax bracket.  If you make a $1,000 charitable contribution:

• It will cost you out of pocket $1,000 to the charity, and
• It will save you only $250 in taxes assuming that you have sufficient itemized deductions to exceed your standard deduction.

In effect, you will not have a savings but rather a net cash payout of $750.00 ($1,000 - $250 savings.)

[SweetieJean]

Some states allow deductions for charitable contributions as well.