Will Your Donations Help Reduce Your Taxes?

There are many ways and opportunities to help people with cash donations. You may give them money directly, donate money through GoFundMe, or make payments on an individuals behalf.

How and to whom you make your donation will determine if your donation is tax deductible or not.

Charitable Organizations

In order for your donation to be tax deductible, it must be made to a qualified charitable organization.

When you file your taxes, you either itemize your deductions or use the standard deduction. If your standard deduction exceeds your itemized deductions, your charitable contribution will not make a difference in your taxes.

If your itemized deductions (medical expenses, certain taxes, mortgage interest, and charitable contributions), exceed your standard deduction, the charitable contributions will be beneficial.

Your deductions must be made prior to the end of the year. Check the tax exempt organization search tool to see if your organization of choice qualifies.

Tax Exempt Organization Search

Gifts

Donations outside of charitable organizations are considered gifts. You may gift an individual up to $18,000 in 2024 without having to file a gift tax return. However, they are not tax deductible.

Giving money directly to the less fortunate, donating through GoFundMe for an individual are gifts.

Be sure to speak with your tax advisor to strategize on how to impact your tax liability through charitable donations.

Are you looking to start proactive tax planning in 2024?

We specialize in providing comprehensive tax plans tailored to high earners like yourself who are on the path to financial prosperity.

If you are a H.E.N.R.Y looking to increase your net worth through tax savings, we are accepting new clients. Schedule your consultation today to secure your spot for our exclusive services.

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Karitsa Kerns is an Enrolled Agent and Tax Strategist who specializes in reducing tax liabilities through proactive tax planning tailored for each unique individual. As an Enrolled Agent licensed through the Internal Revenue Service, Karitsa can represent taxpayers in all 50 states. As the owner of KNK Tax and Accounting Services, she provides services ranging from Tax Advisory, Fractional CFO, Tax Planning, Tax Preparation, and Tax Resolution.

If you are a H.E.N.R.Y (High Earner, Not Rich Yet), working with an expert who specializes in Tax Strategy makes all the difference in your bank account. At KNK Tax and Accounting Services we provide quality services, and educate our clients to contribute to the success of their business. Please visit us at knktaxaccounting.com for more information or to schedule a consultation.