Reminder: Khan Academy still has basic explanations on taxes in the U.S. This should help you with understanding tax brackets, deductions, and other related information.

[u/zonination]

Basically a repost from last year, but I felt the need to remind people that this resource exists. There are some simple explanations of tax law in the U.S. over at Khan Academy. Here are a couple links:

• Introduction to Tax Brackets
• Introduction to Deductions
• A link to all lessons in the Tax Portal

And since retirement accounts tie into deductions:

• Link to the Retirement Accounts lessons

Let me know if there's anything related I should add to this list. Happy filing!

[u/onhcpf]

Hi, can someone explain this for me? Suppose a person makes $100,000/year. If he donates $10,000 to charity, so his taxable income is only $90,000, how does that benefit him? Either he gets taxed on his $10,000 (in the $90,000+ bracket) or he gives it all away and gets nothing. How is he "writing it off"? How do people use charity donations like this to come out ahead/benefit?

[u/zonination → u/onhcpf]

That should be right in the deductions section of the videos!

(Please review the previous video for background information)

[u/onhcpf → u/zonination]

I already watched that, and I'm still confused.

[u/zonination → u/onhcpf]

Ah, I took a second look at your question. Basically, by donating to charity, you reduce the amount from your taxable income. There is not really a way to come out ahead, unless donating to the charity is more valuable than the % you lose from the after-tax gain you get from the money.

I hope I am explaining this well.