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.
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You are correct that you still end up with less overall, but it doesn’t feel quite so bad if your charity gets $1000 and the net effect to you is -$700 because you reduce your taxes by $300.
The intent is you gave the money that you would have given the government in taxes to the charity instead. It’s not about making money, it’s about redistributing it. Basically, the government is saying “Since you were a good person gave X amount to your chosen charity, we’ll subtract that from what you owe us” *In very simple ELI5 terms. The actual law on how you get credit for charitable giving is a bit more complicated*
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.
Need to read the tax law. It’s based on amount of income you are claiming allows you a tax break if a certain amount was donated to charity so you are paying less in taxes
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