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Can I get tax credits or any benefits of transferring my income to non profit 501(c)(3) for social causes?

The problem is I'm not getting any funds from outside sources at the moment so I have to inject money into it to run its operations. Please advise.

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  • added US tag because of the mention of 501(c)(3) Dec 23 '20 at 12:16
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    You can "transfer your income" to the non-profit by just contributing it after you get it. Is there something else you're looking for?
    – D Stanley
    Dec 23 '20 at 13:57
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Yes. You may donate to a non-profit even if you are the founder or are on the board. If the amount you donate takes you above the federal standard tax deduction, then you can use that donation to reduce your tax burden. (Not a tax credit though- donations are tax deductions.)

Note that if you decide to pay yourself a salary from the non-profit, you would still have to pay regular taxes on that income, including FICA taxes again, and the corporation would also have to pay the employer portion of FICA taxes. This means while you are the only donor, overall you'd probably be better off not paying yourself any salary from the non-profit, and instead only donating enough money to cover expenses (which could possibly include some amount of future expenses too).

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    Thanks, yes sure the idea is only to fund to cover expenses, buy equipment etc. didn't intend to draw any salary. Dec 23 '20 at 23:23

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