taxes vs charity

[Anonymous]

I make a high wage income. I don't own a business that allows creative tax deductions.

I try to donate a lot to charity. I also pay a lot of income taxes.

I also pay extra taxes because chasing down all the requirements for dedications and credits for Federal and State is confusing and exhausting.

I want to give up and just consider my tax overpayments to be (at least part of) my annual charitable contributions.

What are your thoughts?

[Anonymous]

I think that is ok. I wonder when I give to charities that I care about about the fact that I am pulling rax dollars that go to needs I am not even aware of....or maybe get used inefficiently (though charities might be inefficient too)

[Anonymous]

1. It’s not hard to track deductions. I just keep a running list during the year. There aren’t that many these days anyway.

2. If you want to make charitable deductions easier set up a Donor Advised Fund. You take a deduction when you put the money in (we fund it with appreciated stocks) and then direct money to the charities of your choice.

[Anonymous]

Your tax “overpayments?” What are you on about?

Don’t let taxes drive your benevolence. Charitable deductions are only worth anything when you itemize and even then you only save a max of like 35 cents on the dollar. There are no credits for charitable donations.

[Anonymous]

OP here.

It's not tax deductions for charitable contributions that I am worried about.

It's junk like moving money through a deductible state 529 account vs just using Vanguard's Nevada plan, tax loss harvesting on investments, keeping up with 401k rules, opening parallel accounts for each member of my family for 529 and I-Bonds and the rest, various credits and deductions that may or may not phase out based on my income, and whatever other money shuffling gimmicks create deductions.

[Anonymous]

Anonymous wrote:Your tax “overpayments?” What are you on about?

Don’t let taxes drive your benevolence. Charitable deductions are only worth anything when you itemize and even then you only save a max of like 35 cents on the dollar. There are no credits for charitable donations.

If you don't know what you are talking about, it might be better to reman silent, or to ask thoughtful questions. You can't fill your mind if you keep it closed.

[Anonymous]

Anonymous wrote:OP here.

It's not tax deductions for charitable contributions that I am worried about.

It's junk like moving money through a deductible state 529 account vs just using Vanguard's Nevada plan, tax loss harvesting on investments, keeping up with 401k rules, opening parallel accounts for each member of my family for 529 and I-Bonds and the rest, various credits and deductions that may or may not phase out based on my income, and whatever other money shuffling gimmicks create deductions.

We have a financial advisor and tax advisor. They help with these things. Get competent people helping you. There is no virtue in overpaying your taxes, that money is better directed to actual charities. If you are truly high income you should have these people anyway.

[Anonymous]

We are in a sour spot for taxes; we make too much and too little -- nothing makes a difference.

[Anonymous]

Anonymous wrote:I make a high wage income. I don't own a business that allows creative tax deductions.

I try to donate a lot to charity. I also pay a lot of income taxes.

I also pay extra taxes because chasing down all the requirements for dedications and credits for Federal and State is confusing and exhausting.

I want to give up and just consider my tax overpayments to be (at least part of) my annual charitable contributions.

What are your thoughts?

If you have a high wage income, you can easily afford an accountant to file your taxes.

[Anonymous]

High income earners pay enough in taxes. No need for charity beyond that.

[Anonymous]

Anonymous wrote:OP here.

It's not tax deductions for charitable contributions that I am worried about.

It's junk like moving money through a deductible state 529 account vs just using Vanguard's Nevada plan, tax loss harvesting on investments, keeping up with 401k rules, opening parallel accounts for each member of my family for 529 and I-Bonds and the rest, various credits and deductions that may or may not phase out based on my income, and whatever other money shuffling gimmicks create deductions.

Aren't most of those by choice? I mean, you signed up for all of those right?

[Anonymous]

Maybe get an accountant for help if you have such high wages.

[Anonymous]

Anonymous wrote:OP here.

It's not tax deductions for charitable contributions that I am worried about.

It's junk like moving money through a deductible state 529 account vs just using Vanguard's Nevada plan, tax loss harvesting on investments, keeping up with 401k rules, opening parallel accounts for each member of my family for 529 and I-Bonds and the rest, various credits and deductions that may or may not phase out based on my income, and whatever other money shuffling gimmicks create deductions.

How is succeeding or failing to take advantage of every possible tax minimizing vehicle in any way related to charity? No, using a 529 plan that doesn't give you a state tax deduction isn't substitutable for charity. It's just paying taxes.

[Anonymous]

High earners contribute much more to charity, through taxes and related government programs alone, than regular people who consider themselves charitable.

Of course people will tell you to pay more and contribute more, because they are selfish and want someone else to do it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Your tax “overpayments?” What are you on about?

Don’t let taxes drive your benevolence. Charitable deductions are only worth anything when you itemize and even then you only save a max of like 35 cents on the dollar. There are no credits for charitable donations.

If you don't know what you are talking about, it might be better to reman silent, or to ask thoughtful questions. You can't fill your mind if you keep it closed.

Sweetie. Bless your heart, but do hush your mouth. I am a CPA with an LLM in tax.