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Originally Posted by perfectnobody
so basically, they take the amount of tax you pay on a "Z" (i think it's about $3,000 for base plus sports... not 100%) and deduct that from your gross income for the year and you are only taxed on the remaining...
so you are not actually getting$3,000 back, just getting taxed less.
still better than i was expecting in the first place, so it's still great!
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Yep, not a true credit like the new home buyers get, but still not bad! Especially when you add it up with mortgage interest, charities, etc.
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Don't forget that you may wind up in a lower tax bracket after the deduction.
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I'm going to have to look hard at it this year, more than normal. Because of a substantial raise this year, it'll be the first time I'm even close to the next tax bracket. There may be a few lucky charities out there if math is on their side!