Charitable Deductions

The contributions towards nonprofits from individuals and businesses have been a critical factor to why thousands of organizations exist to this day. The tax regulations that the United States has created in relation to charitable deductions allows for all of these individuals and businesses to deduct the contributions that essentially reduces their taxable income. As we work to understand charitable contributions and the effect it has on the government, some basic information will be reviewed in relations to itemized deductions and charitable deductions. First, itemized deductions in general will briefly be introduced including an analysis of certain deductions. The remaining of the focus will be solely on charitable contributions, while comparing it to some other itemized deductions periodically. First, who can claim charitable deductions will be discussed following various rules and regulations regarding the deduction. Following, the focus will lie on who actually claims the charitable deduction, and who benefits from the itemized deduction including which demographics of individuals as well which kinds of organization in relation to the service they provide. As we analyze charitable deductions further, international countries will be discussed in relation to charitable contribution. Lastly, some forms of critics …show more content…
When individuals fill out their return, they are eligible to claim either a standard deduction (a fixed amount based on filing status). However, if they feel that they can earn more of a deduction by listing each deduction separately they would have the option to itemize their return. In general and for obvious reasons, individuals who would have a higher aggregate itemized deduction than their standard deduction find it worthwhile to itemize. In this case, they would be required to list each individual itemized deduction in case of an IRS audit (Lowry