tax-deductible charity

Question

How is it possible to give to charity “for the tax write offs”? I see that you don’t pay 30~40% tax on the amount you donated, but you no longer have 100% of the amount so surely you’re worse off.

In: 2

Answer 1

You don’t pay tax on the amount you donated.

But you can also deduct the amount you donated from your annual reported income.

So for example, if you earned $50,000 throughout the year, and donated $5,000 throughout the year, you get taxed on $45,000.