The IRS Deductions Blog

Posts Tagged ‘charity’

Question: Need Help with Paycheck Deduction Percentage Calculation?

If I make $21.32 an hour after taxes pension cpp ect I’ve worked it out to %25.8 deductions. I may be up for a raise to $25.00 an hour. What percentage of deductions would I be at then? Or how would I figure that out. Thanks so much!
Thanks for the reply’s guys!

More info:

Currently making $21.32 / hr in Ontario working 40 hours a week. I calculated my current deductions (company pension included) to be at %25.8.

I don’t, however ,know what the calculations would be with a %17.2 pay increase.

Would it be to assumptious to say that on a $1000 a week pay (2000 bi-weekly) I would be taking home an additional $400.00 monthly (In comparism to my current $21.32 / hr wage?

Thanks for the help!
and I’m currently making $21.32 an hour before deductions. My gross is $1711.18 bi-weekly. Net I’m getting $1265.00 bi-weekly. Seeking net income , bi-weekly, at $25.00/hr.

Thanks

Answer: 260 working days in a year.
Note: that includes the vacation and holidays that get paid for without actually working.

260 days times 8 hours (assuming you work full time)
260 * 8 = 2080 hours
2080 * 21.32 = 44,345.60 annual gross pay
Assuming that you live in Ontario.
I calculate 9,922.07 deductions total… 22.3%

I’ll say 22.3 percent is close enough for this estimated scenario where I don’t know how you calculated your percentage and I don’t know what province you live in.

2080 * 25 = 52,000
Assuming again that you live in Ontario.
I calculate 12,569.39 deductions total… 24.1%
That’s a tax increase of 1.8% on a 17.2% wage increase.

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Question: How much of a donation is tax deductible?

Sorry if this has been asked,

For the first time time i have found myself in a job where taxes are not automatically taken from my pay check and I am nervous about tax time. So, if i donate $1,000 to a charity how much of that will be removed from the amount I will owe at tax time.
On the IRS website it states the charities I am looking at are “a public charity with a 50% deductibility limitation”…… Does this mean that out of the $1,000 i donate I should expect $500 dollars deducted from the amount I owe?

Thanks in advance….

Answer: Forget about the 50% rule. That doesn’t apply to your situation.

Your $1000 donation would be an itemized deduction. If you take the standard deduction, then your donation doesn’t help you at all (this is the case for most people who do not own a home with a mortgage). If you itemize deductions anyway, then the donation will reduce your taxable income by $1000. The reduction in tax owed is based on your tax rate. For example, if you’re in the 25% tax bracket, it will save you $250.

Most of the time, charitable contributions do little or no good in terms of saving people money on their tax bill.

You REALLY need to get some professional tax advice and DO IT NOW! It sounds like you’re being treated as an independent contractor, which means you have to file taxes as though you are self employed. You’ll need good records of income and expenses. You’ll owe self employment taxes on top of ordinary taxes, and you may be hit with a penalty if you’re not making quarterly estimated payments. You are setting yourself up for a HUGE bill from the IRS if you’re not careful. Do some research about independent contractors and pay a tax adviser to explain it to you if necessary.

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Question: past year online gambling totals. +5300 winnings, -9800= -4500 total. can i claim all of it as a deductible?

Answer: I assume you’re asking about USA federal taxes. You can deduct gambling losses up to the amount of your gambling winnings, so in your case you can take a $5300 deduction.

Also, be aware that this is an itemized deduction, so if you don’t itemize you can’t take it at all.

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Question: is a new wood stove a tax deduction?

I live in Ohio and we have newly installed a wood stove in our home as a form of heating that uses a renewable energy source versus the propane furnace we were using…. Is the cost of the new stove a tax deduction federal and state?

Answer: It is not deductible for federal taxes. There are energy tax credits, but a wood stove is not one of them. I dobt that the state would have any tax preference item for a wood stove.

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