Dear TaxChatter: do charitable donations reduce my tax liability?

Dear TaxChatter: do charitable donations I give reduce the taxes I owe?

Curious in Columbus

Dear Curious in Columbus: this is a great question! In 2018 the standard deduction for taxpayers (filing as single) increased from $6,500 to $12,000 which means a lot of individuals started taking the standard deduction over "itemizing" their specific deductions when they filed their tax return.

You are allowed to take the greater of the standard deduction ($12,000) OR the total of your itemized deductions which includes state & local taxes paid, mortgage interest & charitable donations (this is not a complete list as there are additional permissible itemized deductions).

Unless you have a large balance mortgage or a high interest rate mortgage most people find they do not itemize anymore which means the amount you give to charity during the year has no impact on reducing your tax liability.