Current Events > Do you get the money back from charitable donations when declared on your taxes?

(+) Yeah! (+)

I don't know how it works.

Yes and no.

A certain amount of charitable donations when filing your taxes is looked as less income you made. In short, you can get a deduction.

That being said, it would need to be an amount that is high enough to warrant an itemized deduction.

It's as if you never made that money.

1. Assume your monthly paycheck withholdings are exactly right, and therefore you would normally owe nothing and get no refund at tax time.
2. If you donated $5,000, then from the government's point of view, you have paid taxes on 5k that you effectively never made (and they don't know that).
3. So now you will get a refund on the taxes that you would have paid on that $5k.
4. You will not get a $5k refund. You get a much smaller fraction back. The exact amount depends on how much income taxes you would have normally paid on that $5k.

The intent is to not penalize people for donating, not to save them money.

Only if you itemize and unless you have a shit ton of business expenses itemizing isn't worth it.

Significant retirement/529 contributions and mortgage interest, along with donations, can also make it worth itemizing. That's how it works out for us.

Donating clothing adds up quickly.

if your a billionaire you get more back

I put them on my tax forms in 2022 and the difference was minimal or non-existent.