The answer to that varies from person to person and is subject to phase outs at higher income levels. The following table shows the automatic deduction the IRS provides. While this is more than most people contribute to charity in a year, there are other items that are included in this amount such as including interest on a home mortgage, medical expenses and business expenses that exceed certain base amounts, state taxes withheld, and real estate taxes paid. Your charitable donations in the form of cash and volunteer mileage may help to lower your tax bill. As with any major tax decision, confer with your own tax or financial advisor so you’re sure you get the most out of all your deductions.
Is it worth the time and effort to itemize just to get a deduction for charitable giving?
Posted by IMSweb on December 29th, 2009