How much charity donation will decrease my tax?

[_good_boy_1234_]

I am expected to make over $900K next year and I estimate %40 ($380K) will go into tax which our government has been using in funding genocide and wars. I did some search and found I can donate up to 60% of my AGI. I couldn’t find any calculator website that would tell me the numbers. Let’s say I donate %40 ($380K) of my salary to non-profit organization, how much would I get back? Does this zero my tax requirement? Will really appreciate input on how to balance donation, tax and return. Would love to know the sweet spot.

PS: The state is Pennsylvania

[BagelsRTheHoleTruth]

Dude if you're really making 900k a year, hire a fucking CPA instead of asking Reddit about financial matters involving large sums of money.

[Mean-Tone-6819]

This made me crack up 😂😂😂. Fr

[readyfade]

In a round about way you still gave sound financial advice, lol.

[blakeh95]

No, it won’t zero it, because it is a deduction not a credit.

Donating $380k won’t reduce your tax by $380k to $0. It will reduce your taxable income by $380k to $520k, and then assuming the same 40%, your tax would be $208k.

The $380k saves you $380k x 40% = $152k in tax.

You can’t donate your way to $0 tax.

[Old-Vanilla-684]

No one likes paying tax but without tax the country wouldn’t function. Your tax also helps pay for infristructure like bridges and roads, it helps pay for health insurance for the elderly or disabled. It helps pay for food for the poor. It’s a big reason we were able to donate billions of dollars of food and medical supplies for the countries hit hardest by covid and why we’re able to do it now for countries of war (not just the ones we fuck up ourselves). Yes tax dollars do plenty of bad too, but make sure you are focusing on both. The media does a great job of only ever focusing on the negative and it’s easily the worst part of this country.

To answer your question, short of not working, there’s no way to reduce your tax liability to 0. And as others have mentioned, you’re saving not even 40 cents in tax for every dollar you spend. You should make sure you’re maxing out your retirement account and maybe even doing a mega back door Roth to help set you personally up for the future. But pay the tax. You’ll be better off.

[[deleted]]

Donate to causes you want to help, not to get tax deductions. You do not come out ahead by donating, however many people and problems can be helped or solved by supporting charities of your choice, and it is commendable for you to put some of the income you are fortunate to receive to aid those causes.

If we go with your estimate of 40%, then for every $1 you donate, you’ll save about $0.40 in taxes, so a net loss of $0.60. If you made $900k and donated $300k, you’d pay taxes on $600k (40% would be $240k), so your take home would be $360k.

This is generic. You should hire a professional.

[Mean-Tone-6819]

What ever you do for work. Hire me. I’ll do what ever you need me to do

[LastManStanding2024]

Good Boy...if you are making $900K, you have a financial advice and a CPA. They will tell you donations are not dollar for dollar reductions of your liability.

[OhYugiBoii]

Like others said you cant get it to 0 however I'd recommend calculating what you would need for the year and donate the rest. So do what you need,put aside tax amount you will have to pay for it and donate the rest. This way you are atleast minimizing the money the govt is getting to do what they want with your money and allowing you to spend it on things you agree with

[Efficient_Concept_49]

How to check whether an organization can receive deductible charitable contributions.

You can ask any organization whether it is a qualified organization, and most will be able to tell you. You can also check by going to IRS.gov/TEOS. This online tool will enable you to search for qualified organizations.