Why aren't my 2023 donations applying to what I owe?

[Bsch4477 · Accepted solution]

Charitable donations are an itemized deduction so they can’t be used if you claim the standard deduction. The total of your itemized deductions reduce your gross income. They are not applied directly to your tax liability. 

[SteamTrain]

@flower8822 

Well,

1) the software applies the Std Ded for you right at the very start, based on whether your filing status is Single or HOH or MFS, or MFJ

2) then you start adding all your various Itemized Deductions ...and when your total allowed itemized deductions start to exceed the Std Deduction level for your particular filing status...then it usually starts affecting the final amount you owe.

And, of course, you should have already entered all of your income first for any numbers to be valid.

____________

Certainly there are exceptions....like

a) the deduction for state/local/property taxes cannot exceed $10,000. And, medical deductions don't start having an effect until what you've entered (as medical expenses) exceeds 7.5% of your AGI.

b)  also, you could still owe something for any self employment taxes (SS & Medicare) if you work as a self-employed person

c) Once your itemized deductions have increased to a level where you get all your prior tax withholding & estimated taxes paid ,refunded...you generally don't keep getting more back, even if you add a $million more donations.  (except for any refundable child tax credits you might be due).

______________

Just keep adding all your possible itemized deductions, and see what happens in the end.

[VolvoGirl]

Only the amount of itemized deductions that go over the Standard Deduction will benefit you.

And by increasing your deductions it will decease your income and you may not be getting as many credits as before.   Also after you reduce your income to zero there is no more refund to get back but you still may owe for other things like self employment tax or the 10% early withdrawal penalty from 401k or IRA accounts.

For 2023 the standard deduction amounts are:
Single 13,850 + 1,850 or 65 and over or blind
HOH 20,800 + 1,850 for 65 and over or blind
Joint 27,700+ 1,500 for each 65 and over or blind
Married filing Separate 13,850 + 1,500 for 65 and over or blind