Solved: Why does each charitable contribution reduce amount owed by a different percentage?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

Why does each charitable contribution reduce amount owed by a different percentage?

As I add each charitable contribution, I watch my amount of taxes owed going down but for each entry the amount that the taxes are lowered is a different percentage lowered.  It is about 24% on the average but I've seen a range from 23.8% to 24.56%.  Why the difference?

1 Best answer

Accepted Solutions
Level 15

Why does each charitable contribution reduce amount owed by a different percentage?

Because..the tax tables only work in $50 increments.  You could make a $1 contribution and get a $12 tax change if you were right at the next $50 block.  (not always $12...but you get the idea). then make another $40 contribution with no tax change

So you are in the 24% bracket, but where your income ends up  in the tax table after the contribution is a bit fudgy,.

View solution in original post

1 Reply
Level 15

Why does each charitable contribution reduce amount owed by a different percentage?

Because..the tax tables only work in $50 increments.  You could make a $1 contribution and get a $12 tax change if you were right at the next $50 block.  (not always $12...but you get the idea). then make another $40 contribution with no tax change

So you are in the 24% bracket, but where your income ends up  in the tax table after the contribution is a bit fudgy,.

View solution in original post

Dynamic Ads
v
Privacy Settings