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your donation and taxes

Posted: Wed Feb 10, 2021 12:26 pm
by art walsh
I'm not a tax expert !!!
I believe that if you donated to burning man to help with the cash crunch, you can take a charitable tax deduction.

Even if you don't itemize, you can take up to a $300 deduction.

Re: your donation and taxes

Posted: Wed Feb 10, 2021 1:15 pm
by FlyingMonkey
Yes. If you feel inclined to do so.

7. Charitable donations
Normally, deductions for charitable donations are only available to filers who itemize. But in 2020, you can deduct donations of up to $300 even if you don't itemize. That $300 applies whether you're a single filer or you file a joint return. However, in 2021, that $300 is deductible on a per-person basis, so if you're single, you can deduct $300, but if you're married filing jointly, you can deduct $600.

https://www.fool.com/taxes/can-i-take-t ... itemizing/

- I'm no tax expert but I do have some wicked Google skills

Re: your donation and taxes

Posted: Wed Feb 10, 2021 1:51 pm
by Canoe
Do donations come off of Taxes Payable or off of Income...
How much would a donation of $300 reduce one's taxes?

Re: your donation and taxes

Posted: Thu Feb 11, 2021 4:52 am
by FlyingMonkey
Canoe wrote:
Wed Feb 10, 2021 1:51 pm
Do donations come off of Taxes Payable or off of Income...
How much would a donation of $300 reduce one's taxes?
I guess that varies from 1 person to another depending on your tax bracket. But it's way less than $300. :D

Charitable donations of goods and money to qualified organizations can be deducted on your income taxes, lowering your taxable income. Deductions for charitable donations generally cannot exceed 60% of your adjusted gross income, though in some cases limits of 20%, 30% or 50% may apply.1
https://www.investopedia.com/financial- ... y%20apply.

The key to it all is whether Burning Man is a "qualified organization". I'm sure someone here knows this. I have never looked in to it.

Is it still a gift if you deduct it?

General Rules for Charitable Donations

We'll get to those situations in a second. But first, three general rules apply:

- Charitable donations must be made to a 501(c)(3) exempt organization to be deductible;
- You must keep records -- bank statements, a letter, a receipt -- to deduct a donation; and
- Donations are tax deductible only when you itemize.
The first rule is particularly important -- the cute kid selling candy may not belong to a properly registered non-profit. Check the IRS database to be sure.
https://blogs.findlaw.com/law_and_life/ ... tible.html


-I'm still not a tax expert but my Google skills are on fire today