You might not need a tax pro, but running your exact numbers through tax software or a model would be very educational (and accurate!). First, the Roth conversion will add to your AGI. The DAF may be deductible from your income, but only on Schedule A where it counts as a charitable donation... as does the property tax and state tax, which together are currently limited by SALT to $10K total. And note that you have to add your Schedule A deductions (charity, taxes) up, and then IF they exceed your standard deduction ,then you can deduct them. In other words, you only truly benefit from DAF deductions that exceed your MFJ deduction ($29,200 for 2024, less $10K SALT so DAF over $19,2k).Simply put I am trying to do two things create a DAF and do a Roth conversion while paying as little tax as I can.
My hope was to be able to deduct the DAF funds from my taxes which would help eliminate the taxes from the Roth conversion.
I thought I could deduct the DAF funds up to 30% of my AGI while also itemizing property tax and state tax.
Statistics: Posted by CAsage — Sat Oct 26, 2024 2:09 am — Replies 9 — Views 344