The tax break you receive is based on your marginal tax rate and the amount of your allowable deduction. For example, if you are in the 24 percent federal income tax bracket and you claim an additional 1,000 dollars of charitable deductions, your federal tax is typically reduced by about 240 dollars. Noncash donations reported on Form 8283 follow this same principle. The deduction amount is generally equal to the fair market value of the donated property, subject to percentage of adjusted gross income limits that depend on the type of property and the type of charity. If your total itemized deductions are less than the standard deduction, you will not see a separate federal tax reduction from charitable gifts. Some states also allow charitable deductions, which can further increase the overall tax benefit.
