Is it possible to earn income tax credit (reduce my taxes) if I donate money to certain government agencies?
Say if I donated money to walter reed army hospital or my local school to help fund them. Could I use that to lower my income taxes? If yes, how would it work?
Author: Worldprofit
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Probably not…You get a standard deduction of $5200 (if you’re single). If your itemized deductions exceed that amount then yes, it will reduce tax. Otherwise take the $5200 std. deduction
Many schools, and some hospitals, have IRS designation that allows contributions to them to qualify as tax deductions. This would not include, obviously, items that you are required to pay like hospital bills, property taxes and tuition.
If the organization qualifies, you would list the contribution as a charitable deduction on schedule B. You can only deduct contributions if you itemize, so wouldn’t do it unless your total itemized deductions were higher than your standard deduction for the year.
If they are a non-profit it is tax deductible. some schools are for profit. They have to be a 501(c)3 with the IRS. You cannot donate labor, only money or some clothes with a reciept or a used car with a reciept. Hospital if they are non profit are good or an art agency, or a health education foundation, like diabetes, etc. Or go green…