Tithing Giving Money Away To Gain Tax Benefits

Tithing - Giving Money Away to​ Gain Tax Benefits
No good deed goes unrewarded .​
This is​ even true as​ far as​ the​ tax man is​ concerned.
As human beings we are compelled to​ help those who are less fortunate than ourselves .​
It makes us feel good inside when we are able to​ help a​ family in​ trouble,​ donate money to​ the​ church,​ or​ donate our old clothes to​ the​ Good Will .​
But did you​ know that these acts of​ kindness can actual lower the​ amount of​ taxes that you​ pay?
Tax credits are given by our government to​ encourage and reward acts of​ kindness and donations to​ charitable organizations.
Tax credits in​ many ways are better than tax deductions .​
You see… a​ tax deduction is​ a​ method that lowers your taxable earned income .​
For instance,​ a​ tax deduction could be the​ interest you​ pay on​ your house,​ or​ the​ contributions you​ make to​ your employers 401(k) plan .​
With lower earned income,​ you​ pay less tax.
A Tax Credit on​ the​ other hand,​ does not require you​ to​ lower your earned income to​ receive a​ reduction in​ the​ taxes you​ pay .​
You simply calculate how much you​ owe for taxes and then subtract the​ tax credit from the​ total.
For tax year 2018 ,​ taxpayers filing as​ single and unmarried head of​ household have a​ maximum credit amount of​ $200 .​
Taxpayers that are filing as​ married filing joint have a​ maximum credit of​ $400 .​
Taxpayers filing married filing separate have a​ maximum credit of​ $200 .​
What this means is​ that if​ you​ contribute to​ a​ charitable organization you​ can take anywhere from $200 to​ $400 off the​ amount of​ taxes you​ owe to​ the​ government .​
Where else can you​ get a​ deal like that?
As always check with your accountant or​ tax professional for advice on​ making charitable donations and tax credits .​
However,​ tax credits are available to​ everyone and are fairly straight-forward.
Charitable organizations help thousands of​ people every year have a​ better life .​
Who knew that in​ helping them do their job,​ you​ too could benefit .​
I​ pays to​ help others.
Tithing Giving Money Away To Gain Tax Benefits Tithing Giving Money Away To Gain Tax Benefits Reviewed by Henda Yesti on July 05, 2018 Rating: 5

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