| You can donate and deduct up to 50% of your adjusted gross income for the year to a church. That means if the adjusted gross income of you and your wife is $28,000, you can donate and deduct up to $14,000.
However, I am not sure you understand how the deduction works. You can deduct amounts you donate to the church as an itemized deduction on Schedule A. The amount you deduct is not subtracted from the tax you owe, it is subtracted from your income, and the tax is computed on the remainder. For example, if you itemize deductions, and if the taxable income of you and your spouse, without the contribution deduction, is 20,000, your income tax would be $3,004. If you made and deducted a contribution of $4,000, your taxable income would be reduced to $16,000, and your income tax would be $2,404, so the $4,000 contribution would save you $1,600 in income tax. If you don’t otherwise itemize deductions, your savings would be less. |