If I were to donate clothing, and got a slip saying that I had donated $500, would this be off your pre-tax income or would it be off the taxes owed?
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only cash donations can be deducted if you do not itemize. non-cash donations are part of itemized deductions on Schedule A. Itemized deductions come off pre-tax income.
to be able to itemize it must exceed your standard deduction unless you are married filing separately in which case both taxpayers must use the same method.
standard deduction 2022
single or married filing separately $12,950
head of household $19,400
married filed jointly or qualifying widow(er) $25,900'
higher amounts if taxpayer/spouse over 65 and/or blind
it reduces your pre tax income as it is a 'deduction' (assuming you can itemize your deductions)
if it were a 'credit' it would be off your 'taxes owned' (but donations are a deduction and not a credit)
Q. If I were to donate clothing, and got a slip saying that I had donated $500, would this be off your pre-tax income or would it be off the taxes owed?
A. Simple answer: Off your pre-tax income . Actual answer: neither.
Charitable deductions are an itemized deduction. Which means you must have enough total itemized deductions to exceed your standard deduction before you see any benefit at all.
Your state may have different rules for this on the state return.
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