Comment Re:Any central authority will do (Score 1) 194
I'll give an example. Assuming your tax rate is a flat 20% and your income before taxes is $100,000, then your tax bill will be $20,000. If you donate $10,000 to a charity, the $10,000 is tax deductible and reduces your taxable income from $100,000 down to $90,000. At $90,000, your tax bill is $18,000. Therefore, your $10,000 tax deductible donation reduced your tax bill by $2,000.