As the year draws to a close, would a charitable gift help your tax situation?
Licensed CPA Lourdes Sepulveda said when you donate to a charity (typically a 501c), you can deduct the amount of your donation from your taxable income. Sepulveda also said she, herself, has donated to charities on multiple occasions.
“Some of the charities will tell you what the money is being used for and it does help you,” Sepulveda said. “I mean, I’d rather have somebody donate to a charity and get a little bit more expenses than losing the money somewhere else.”
Sepulveda said federal tax rules apply to all qualifying non-profits, regardless of the charity’s location or the cause it supports. Sepulveda said Federal tax rules are designed to ensure consistency across all qualifying nonprofits and/or charities.
“It doesn’t matter if its non charities or other ones,” Sepulveda said. “It’s all the same amount”.
Sepulveda said that along with financial benefits, giving back helps others rather than yourself. Making charitable donations and other forms of altruistic financial behavior can boost happiness and enhance overall well-being.
