New to Tax Strategies?
Read our Complete Tax Strategies Guide →I'm curious if anyone has used a Donor Advised Fund (DAF)? And if so, how are the contributions to it treated on ones taxes.
Are DAF contributions counted as an additional deduction beyond the standard deduction?
For example, we are married filing jointly. Standard decution is $31,500. If we give another $10,000 to a DAF, would that reduce our MAGI by a total of $41,500?
Thank you for any insight!
Jon
lindsay
9 months ago
I haven't set mine up yet, but have been preparing to do so by the end of the year.
My understanding is that DAF contributions are treated like other charitable contributions, so only applicable if you itemize instead of taking the standard deduction. If you're not going to put more in the DAF than the standard deduction, it doesn't save you anything on your taxes.
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