TheRealMafoo on 25 May 2009
| Avinash_Tyagi said: Donations lower your taxable income, you can use it to reduce what income bracket you are in |
It does not matter what tax bracket you are in.
Let's say you make 200K, and your tax bracket (starting at 190K) is 39%, but from 100 to 190 mine is 35%.
You would pay 35% from 100 to 190, and then 39% for the next 10k.
Giving 15K to charity, and thus dropping your taxable income to 185K, has no impact on what that 185K will be taxed at (35%).
