Making donations to recognized charities can be a smart way to save on taxes while also providing funding to your favorite nonprofit organization. In order to take full advantage of the tax benefits, an individual must itemize deductions on his income tax return.
The benefit for tax savings will vary based on the income tax bracket of the donor. The higher the income tax bracket, the higher the deduction. An individual who pays 33% income tax will receive a deduction of $33.00 on a charitable donation of $100.00. An individual who pays 15% income tax will receive a $15.00 deduction on the same charitable donation of $100.00.
Regardless of the income tax bracket an individual might have, a charitable gift can provide services for those in need while also benefitting the donor.
Getting Legal Help
Giving is part of a strategic estate plan which can benefit loves ones, favorite charities and the donor as well. Experienced Estate Planning Attorney Elga Goodman can help you prepare an estate plan which protects your assets and your loved ones. Call us today at 973-841-5111.
Posted in: Estate Planning, New York Estate Planning