The Tax Cuts and Jobs Act
The Short Answers
Itemize, give stock, and make sure that you are talking to your advisors and us about supporting through the best giving vehicles for you!
Are the Deductions Still There?
First, the new tax law still allows you to deduct charitable gifts and raises the cash gift deduction ceiling to 60%* of your adjusted gross income. While the law is intended to reduce your incentive to itemize by increasing the standard deduction, (for single filers, the standard deduction jumps to $12,000; for married couples filing jointly, $24,000), it also reduces many people's deductions for mortgage, real estate and state and local tax deductions.
*100% for 2020. See CARES Act.
"So, What Does This Mean to Me?"
That means that charitable gifts may be even more beneficial for many people to balance their tax burden with their take-home income, especially giving through one's retirement plan.
If you are facing uncertainty as you approach giving in 2024, let us help!
In Summary… Five Quick Tips
- Make Itemizing Work for You
If your itemized deductions are nearing the new standard deduction ceiling, increase or aggregate your charitable gifts over multiple years to make itemizing work for you.
More Information
For more information, please contact us and we will be glad to assist you.