Updated: Dec 1, 2021
Tax Reform is here. This Reform could affect how much you will deduct on charity this year.
Of course, people do not give donations just for a tax deduction. Millions do it by following their human desire to help who is in need. But under Law, you can also receive tax benefits for doing the right things.
On our scheme, you can see that Congress increased contributions of money to 60 % of adjusted gross income. This means if you give greater, you receive a greater deduction.
At the same time, the standard deduction increased to $ 12,000 for individuals and to $24,000 for married couples filing jointly. The itemized deductions are limited:
Limits deduction for state and local taxes to $10,000
Limits deduction for new mortgages to interest on up to $750,000
Eliminates most itemized deductions
It means, if you as middle-class families, did itemize your deductions in the past and did receive a specific tax benefit for charitable giving, now you will take the standard deduction, which eliminates the tax benefits or charitable giving. Although, wealthier taxpayers will continue itemizing their deduction and give donations.
According to the Tax Policy Center, Tax analysts expect to drop household’s donation from about 37 million to about 16 million this year 2018. The taxpayers who itemize their charitable gifts will reduce from 39% to 15%:
Anyway, it’s a great idea to learn more options for your tax saving. This is also the right time to meet you Tax Pro to discuss your charitable giving plan and to get support.
To make an appointment with Ilona Dovidaitiene E.A.: (800) 913-0809