What better time to donate to those in need than the holidays? However, it's worth thinking about the tax implications and timing of it all. Here is what to consider.
In general, this is done by itemizing your deductions and including charity as a line item. Otherwise, in a typical standard deduction, there is no place for additional charitable donations to be included.
How Much of a Charitable Donation is Tax Deductible?
or 2022, you can deduct no more than 50% of AGI for cash contributions to a charity. Or 30% of AGI if you make a non-cash contribution, such as stock shares.
Donate as much as you like! There are people who need your help. But keep in mind the financial implications and try to take advantage of our tax code!