Quote:
Originally Posted by CorsiHockeyLeague
I don't think that's how it works - or rather it wouldn't here. Even if you somehow make $50,000 a year and donate 50 million, you're still paying some income tax due to the limits on what credits you get.
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It has been a while since I really looked into this, and there may be some income limit phase-outs* that reduce the amount that can be deducted from the income tax due as a result of the charitable deduction, but for most people, if they give, say, $25,000 to a charity, they can deduct the full $25,000 off of their adjusted gross income, up until that amount becomes zero, thereby making their taxable income zero.
* For 2014, the income phase out appears to begin once your adjusted gross income is above $152,525, but there are ways to reduce that number as well....