Tis’ the season for giving, and your donations can actually give back to you by lowering your tax bill.
With a charitable donation, you can gift money or goods to a tax-exempt organization and reduce your taxable income on your federal tax return. Generally, you can deduct from 20% to 60% of your adjusted gross income through donations. However, there are some limitations.
For instance, cash donations to your company-sponsored fundraiser or department store may not be eligible. You can only deduct qualifying donations from an IRS-recognized tax-exempt organization or 501(c)3.
(This article is high level, for more in depth charitable gifting techniques, consider Donar Advised Funds, Qualifed Charitable Distributions from an IRA, Charitable Remainder Trusts, and more) Reach out to Josh with questions.