My family has determined that a fair guideline for us to donate to charity/Church is 10% of after tax earnings. I am debating on what is the best "after tax" number to use.
If my tax rate is 25% and I then make charitable tax deductions, my "effective" tax rate is no longer 25% (it could now be 20% for instance).
So do you think I should be donating 10% of after tax income on the tax bracket rate or the effective rate (meaning I should make adjustments on giving amount for a year after we determine our effective tax rate after deductions for charitable giving).
Thanks.
If my tax rate is 25% and I then make charitable tax deductions, my "effective" tax rate is no longer 25% (it could now be 20% for instance).
So do you think I should be donating 10% of after tax income on the tax bracket rate or the effective rate (meaning I should make adjustments on giving amount for a year after we determine our effective tax rate after deductions for charitable giving).
Thanks.
