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A charitable cash donation is not a dollar for dollar tax deduction. What percentage of a donation is tax deductible?

Forum|Forum|6 years ago
June 1, 2019
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Best answer by AnnaB

The entire donation (up to certain income limits, generally for cash contributions it is 50% of your adjusted gross income) is included in itemized deductions. To the extent you exceed the standard deduction, it is fully deductible.

However, you only receive a tax benefit for your marginal tax bracket. If you are in the 25% tax bracket, then you would receive a direct tax break of 25% of your deducted donation. However, you may be partially in the 15% bracket and partially in the 25% bracket which would create a percentage within those two.

Note: At a certain income level, itemized deductions can be phased out.

A

AnnaBAnswer

The entire donation (up to certain income limits, generally for cash contributions it is 50% of your adjusted gross income) is included in itemized deductions. To the extent you exceed the standard deduction, it is fully deductible.

However, you only receive a tax benefit for your marginal tax bracket. If you are in the 25% tax bracket, then you would receive a direct tax break of 25% of your deducted donation. However, you may be partially in the 15% bracket and partially in the 25% bracket which would create a percentage within those two.

Note: At a certain income level, itemized deductions can be phased out.