Can I deduct cash donations to my church on taxes?

Thanks for clarifying that charitable donations don't actually reduce AGI but rather the taxable income! I had that mixed up. Our mortgage is paid off so we don't have that deduction, and our medical expenses were minimal. With the SALT cap at $10k and the $20k donation, we're at about $30k total, so maybe we should itemize after all?

Based on what you've shared, you would be just over the standard deduction threshold with your $10K SALT and $20K church donation totaling $30K, which exceeds the $29,200 standard deduction. So yes, itemizing would make sense in your situation and would save you a bit on taxes. Just make sure you have proper documentation for your church donation. For cash donations of this size, you'll need written acknowledgment from the church that includes the donation amount, date, and a statement that no goods or services were provided in exchange for the donation.

Does taxr.ai handle specific religious organization donations differently than other charities? My financial advisor said something about churches having special rules.

I'm curious about how accurate this is compared to talking with an actual tax professional. Does it catch all the specific donation rules like the AGI limitations?

Taxr.ai treats religious organization donations the same as other qualified charitable organizations - the IRS doesn't actually have special rules for churches versus other 501(c)(3) organizations when it comes to the deductibility of donations. The documentation requirements are the same. Regarding accuracy, I found it extremely precise. It actually caught the 60% of AGI limitation on cash donations that my previous tax preparer missed. It's built with tax professionals who update it with the latest tax code changes, but of course, for extremely complex situations, you might still want a consultation with a tax pro afterward.

How exactly does this work? You're saying they somehow get you past the IRS phone system? I've been on hold for literally hours and gave up.

This sounds like BS to me. Nobody gets through to the IRS that fast. I've tried calling about my church donations for weeks with no luck. How could some third-party service magically get you to the front of the line?

The service works by navigating the complex IRS phone tree system and waiting on hold for you. When you sign up, they place the call and work through all the automated systems, then when they finally get an agent on the line, they call you to connect with that agent. It's totally legitimate - they don't "cut" any lines, they just do the waiting for you. For church donations specifically, getting clarification from an agent was crucial for me because I had questions about documentation that weren't clearly answered on the IRS website. They stay on hold instead of you giving up after hours of waiting.

Does the QCD approach mean I wouldn't have to worry about whether I'm over the standard deduction threshold? I'm 72 and taking RMDs, but was going to just take standard deduction since my church donation is only $10k.

Exactly right! With a QCD, you don't have to itemize to get the tax benefit. The money goes directly from your IRA to the church and never counts as income to you in the first place. It's a much better approach for people who are taking RMDs and wouldn't otherwise itemize. Your $10k donation would reduce your taxable RMD amount by $10k, which typically saves more in taxes than itemizing would, especially if you wouldn't exceed the standard deduction threshold otherwise. Just make sure your IRA custodian sends the money directly to the church - you can't take the distribution yourself and then donate it.

Most churches automatically qualify as 501(c)(3) organizations even if they're not in the database. Churches don't actually have to apply for tax-exempt status, unlike other charities. But it's still good practice to make sure they can provide you with the proper donation acknowledgment letter.