Re:IRS records reveal how the wealthiest avoid income tax
by AussieWog93 on Tuesday June 08, 2021 @08:06AM
(#27434006)
(Legitimate) tax deductible donations aren't no-cost. You can only use it to reduce your tax at the marginal rate you pay.
If, for example, you were in the 30% tax bracket and gave a $100 deductible donation, you'd only reduce your tax liability by $30 (ignoring edge cases) - ie you're still $70 out of pocket.
If, for example, you were in the 30% tax bracket and gave a $100 deductible donation, you'd only reduce your tax liability by $30 (ignoring edge cases) - ie you're still $70 out of pocket.