Charitable Donations: Cash Donations
Please follow the steps in the Charitable Donations: Overview article for enabling the charitable donations feature in your projections. The following provides details on cash donations specifically.
Cash donations will be treated as an expense in the year of the donation and Snap will either apply the tax credit that year or carry it forward up to 5 years to claim it in the most advantageous way. You will be able to view the donation amounts that have been carried forward each year as well as the donations that have been already claimed. Snap will also display a comparison of the total tax based on a cash donation or no cash donation.
Under the Cash column, you can enter the planned cash donation amounts. (You will not see the Charitable Donations section unless you enable Charitable Donations. Click the value in the year you wish to make the cash donation under the Cash column. Enter the donation amount in the pop-up window. Copy this donation amount until the desired age. Click the dark blue checkmark to save the entry and then run the scenario.
In this example, John Snapper expects to donate $10,000 per year. The cash donations will be taken from John's cash flow that year.