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Posted by nickravo1@gmail.com on April 7, 2008, 1:59 am
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How much will a $1,000 donation reduce by tax bill, if my AGI is
$200,000?
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Posted by joetaxpayer on April 7, 2008, 7:24 am
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nickravo1@gmail.com wrote:
> How much will a $1,000 donation reduce by tax bill, if my AGI is
> $200,000?
Nick - are you already itemizing? You see, if you are taking the
standard deduction, you save nothing by making a donation, they are part
of the Schedule A itemized deductions.
Assuming you own a house and/or have high state taxes, and are
itemizing, it can be $280 or $330. AGI is not 'taxable income', that's
the line you need to go to to have a real answer.
If MFJ (married filing joint) in 2008 the 33% bracket starts at $200,300
so you'd be in the 28% bracket. If single, the 33% bracket starts at
$164,550.
Look at http://www.fairmark.com/refrence/index.htm
to see the tax rate schedules. You can see exactly where I get these
numbers from.
Joe
www.blog.joetaxpayer.com
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
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<< to this newsgroup as well as our anti-spamming policy >>
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Posted by Mark Bole on April 7, 2008, 9:33 am
Please log in for more thread options joetaxpayer wrote:
> nickravo1@gmail.com wrote:
>
>> How much will a $1,000 donation reduce by tax bill, if my AGI is
>> $200,000?
>
> Nick - are you already itemizing? You see, if you are taking the
> standard deduction, you save nothing by making a donation, they are part
> of the Schedule A itemized deductions.
Just to be clear, we are only talking about 2008 taxes and beyond, since
any contributions you did or did not make in 2007 are history, and you
either have the required documentation or you don't.
To add to Joe's reply, limitations on itemized deductions and/or AMT can
complicate the result a little. The easiest way to get an answer is to
use software, make a copy of your return, and put in "what if" numbers
to see how the result changes.
-Mark Bole
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by removeps-groups@yahoo.com on April 7, 2008, 4:16 pm
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> Nick - are you already itemizing? You see, if you are taking the
> standard deduction, you save nothing by making a donation, they are part
> of the Schedule A itemized deductions.
> Assuming you own a house and/or have high state taxes, and are
> itemizing, it can be $280 or $330. AGI is not 'taxable income', that's
> the line you need to go to to have a real answer.
It's quite possible he'll be in AMT (as well as the itemized deduction
phaseout), in which case the deduction would be $0 to $50. I
calculated $50 as 33% deduction saving $330, followed by AMT of 28% or
280, for net savings of 330-280=50.
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by joetaxpayer on April 7, 2008, 5:09 pm
Please log in for more thread options removeps-groups@yahoo.com wrote:
>
>
>>Nick - are you already itemizing? You see, if you are taking the
>>standard deduction, you save nothing by making a donation, they are part
>>of the Schedule A itemized deductions.
>>Assuming you own a house and/or have high state taxes, and are
>>itemizing, it can be $280 or $330. AGI is not 'taxable income', that's
>>the line you need to go to to have a real answer.
>
>
> It's quite possible he'll be in AMT (as well as the itemized deduction
> phaseout), in which case the deduction would be $0 to $50. I
> calculated $50 as 33% deduction saving $330, followed by AMT of 28% or
> 280, for net savings of 330-280=50.
I don't believe charitable deductions are impacted by AMT. i.e. I just
pulled up TurboTax, added $1000 to a charitable deduction, and saw tax
due drop by my marginal rate. Yes, I am otherwise impacted by AMT, as my
property tax has no impact on the bottom line.
Joe
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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