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Is donated income taxable?
if i were to hold city council seat and donate all my salary would it be considered taxable income less than 6k annual for city council in my city. ?
7 Answers
- ShayLv 72 weeks ago
Yes - it is taxable income.
For your donations to be nontaxable, you need to follow a few simple rules.
1. You need to make donations to QUALIFYING charities (AND GET RECEIPTS for those donations to prove it)
2. You need to be able to ITEMIZE your TAX DEDUCTIONS on your tax returns. If you are single, your standard deduction is already $12,400. You get the standard deduction no matter what you do with your income. If you want to deduct things like mortgage interest and charitable donations from your income to try to reduce your taxable income, then your itemized list needs to be MORE than your STANDARD DEDUCTION. You can NOT have both.
3. If social security tax and Medicare taxes are not withheld from your salary, then you would still be responsible to pay for those taxes even if you do donate all of your earnings.
- A HunchLv 72 weeks ago
Of course,
All Donald Trump's salary was taxable income.
Then the deduction for a charitable contribution makes it a is a small reduction in
taxes...
- Anonymous2 weeks ago
Your employment income is taxable.
Your charitable donation is tax deductible (depending on your tax situation).
Donating your gross 6k wages to charity in full will cost you significantly more than 6k because you will still owe social security/medicare tax and any applicable federal and state income tax.
- Wayne ZLv 72 weeks ago
Yes.
The IRS considers these two separate transactions.
1) The salary is taxable to you;
2) The donation is deductible for you if you itemize and gave the money to a charity.