How Does Donating to Charity Reduce Taxes?

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If I give $50,000 in cash to a charity, does that lower my taxable adjusted gross income (AGI) by $50,000? So if my adjusted gross income was $100,000, and I gave $50,000 to charity, is my taxable income now $50,000?


Making charitable donations gives you the opportunity to do good and get a valuable tax deduction.

In the case of a $100,000 adjusted gross income (AGI) with a $50,000 cash donation, you can probably deduct the $50,000 and reduce your AGI to $50,000.

But because we’re dealing with the U.S. tax code, the real answer is this: It depends.