<p>you don't usually state where you donate- but it seems that on finaid forms you not only state your income, but how much you were taxed- from that they can extrapolate what your deductions were, which often include donations, even if the school doesn't require you to supply your 1040 & w-2s, as we have done every year.</p>
<p>However, what about those who chartiable contributions were not enough to allow them to itemize? That would never be reflected on their tax return. Personally, I have tithed to churches and given money to other faith-based organizations for years, but it is never sufficient to allow me to take a tax deduction, as I would need more than $10,500 in deductions...so...</p>
<p>Now, again, as I have already stated, it almost definately wouldn't have any bearing on Federal or State funding, but at a private Christian Institution, it very well may be something they will look at for Institutional Aid, as those Institutions already place a high value on Christian moral and ethics, which is where tithing comes into play.</p>
<p>NikkiiL, how can that be? I am certainly not a tax expert, but it is my understanding that unlike a minimum amount for medical expenses and other miscellaneous deductions, there is no minimum needed to take a charitable deduction.</p>
<p>thats right- I don't think there is a minimum number required for itemization-
however if you are able NOT to itemize, you may be eligible for the simplified form which can make the financial aid offer much more generous.
It helps to do it both ways.
Most years because of house taxes etc, we do itemize taxes, but the year when the standard deduction was more than our deductions and we were able to use the short form, we got more in aid, even though every year our income and tax paid doesn't vary by more than a couple thousand dollars.
<a href="http://www.princetonreview.com/grad/finance/articles/save/aidandtax.asp%5B/url%5D">http://www.princetonreview.com/grad/finance/articles/save/aidandtax.asp</a></p>
<p>Great link! Thanks.</p>
<p>Interesting question, but I guess the bottom line is that if you feel "led to tithe", then I guess God is also leading you to attend a cheaper college, by virtue of that tithing. I do agree with others that it would be unfair of a secular school to somehow give more money to some families just because they feel a personal need to give away money they would otherwise have available for college, whatever the reason. And as others have said, your best bet would be a Christian college using Institutional Methology to determine financial aid. Federal aid absolutely cannot be reduced because of tithing. Church and state, as others have said.</p>
<p>bebooks and emerald,</p>
<p>As a tax professional (and a financial aid counselor) this happens to be one area I am fortunate to have a lot of experience with. Anyone can itemize their deductions, but unless your total deductions are more than your standard deduction, it is not in your best interest to itemize. Chartiable contributions can only be deducted from your adjusted gross income if you itemize. In my case, as a person who files their return as married filing joint, my total itemized deductions for 2006 must have been more than $10,300.00 to make itemizing worthwhile. If it isn't, as it hasn't been in my case, then I cannot use my charitable contributions as a deduction.</p>
<p>well Im afraid I have been using the computer tax programs- instead of working it out by hand to see which is best ( which I may do next year)</p>
<p>The program just always tells me to itemize- but considering we have property taxes, mortgage interest, medical expenses, car tabs as well as charitable donations and work related expenses, it adds up to over $10,000.</p>
<p>Emeraldkitty - the computer program probably calculated for you that you were better off itemising rather than taking the standerdised deduction. I know ours does.</p>
<p>emerald,</p>
<p>Yes the computer programs are designed to give you the best option regarding itemizing. However, most college students and many parents don't have all of those additional expenses which they can itemize. People who have the types of items you have can typically accumulate more than their standard deduction without even trying.</p>