My charitable donations are not receiving the credit they should. I can put in a small amount like $39, and have an $8 credit, super, that works ( I thought it's usually .25 savings for every $1, but $8 is close enough.). But what is bothering me is when I put in a $17,480 donation, I only receive a $593 credit. What is going on? Shouldn't it be closer to $4,370 if I go with the similar scenario? I hope you can help.
Adding itemized deductions like charitable contributions has no tax benefit until the amount of itemized deductions are greater than the standard deduction for your filing status. For example, if you are single with a standard deduction of $12,000, and these are your only itemized deductions, you've only reduced your taxable income by $5,480.
Once you've passed the threshold, additional itemized deductions are more valuable.
Charitable contributions are limited to a percentage of your income.
Adding itemized deductions like charitable contributions has no tax benefit until the amount of itemized deductions are greater than the standard deduction for your filing status. For example, if you are single with a standard deduction of $12,000, and these are your only itemized deductions, you've only reduced your taxable income by $5,480.
Once you've passed the threshold, additional itemized deductions are more valuable.