Do donations lower your taxes significantly when your income is low? How? 4 Answers as of July 15, 2015

If I do not make much money (I make about $20,000/year), and I donate my very used car, will it be enough of a tax deduction to make a difference? The car is worth probably around $700. I do not understand how this works exactly, and I cannot afford to hire an accountant, so please help me.

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Ronald K. Nims LLC | Ronald K. Nims
It won't change your taxes at all. Charitable deductions only lower taxes for people who itemize deductions.
Answer Applies to: Ohio
Replied: 7/15/2015
Polsinelli Shughart PC | William B. Prugh
A charitable deduction reduces the amount of taxable income subject to income taxes. But, you may or may not have enough itemized deductions to take advantage of the deduction. The www.irs.gov web site, or other tax preparation commercial sites let you do the calculations yourself and see if the deduction reduces your taxes.
Answer Applies to: Missouri
Replied: 7/14/2015
Irsfeld, Irsfeld & Younger LLP | Norman H. Green
No. If you were paying INCOME TAX and itemizing deductions, then it might save you $105 or so. Sell the car instead. Donate some of the proceeds to your favorite charity.
Answer Applies to: California
Replied: 7/14/2015
Vandervoort, Christ & Fisher, P.C. | James E. Reed
Probably not. You need to itemize to get any benefit from a donation.
Answer Applies to: Michigan
Replied: 7/14/2015
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