With the new Tax Cuts and Jobs Act , you may be wondering how you will be affected.
"A new higher standard deduction of $24,000 per couple ($12,000 single) would mean that only 5% of taxpayers would take itemized deductions, such as those for charitable gifts. So, should you accelerate charitable giving into 2017? It depends.
"If you don’t expect to itemize deductions in 2018, you should accelerate charitable gifts into this year.
"If you still expect to itemize deductions in 2018, you should still go ahead and make gifts this year, but not necessarily accelerate gifts.
"If you’re a high-income AMT (alternative minimum tax) taxpayer, it might pay to defer charitable donations until Jan. 1. “The larger the gift, the larger the potential benefit,” says Steve Baxley, director of tax and financial planning at Bessemer Trust." (Forbes 13 December 2017)
It’s not too late to make sure you see a tax break for this year (when you itemize deductions on your income tax returns): Make your donation online on or before December 31st, or have your check postmarked by the last day of the year.
If you plan to make a gift of stock or mutual funds, it is recommended that you initiate the transfer as soon as possible, to allow time for processing and to ensure the transfers are executed by December 29th (the last business day of the year).
Please consult with your tax or financial advisor to determine if increasing or accelerating your giving in 2017 is beneficial for your particular situation. Thank you for your support of this and the many not-for-profit organizations in our community that provide vital services and experiences.
More Articles on the Topic
- How to Write Off Donations Under the New Tax Plan: Consider ‘Bunching’ (NY Times 20 December 2017)
- Now that the tax overhaul has passed, here are five moves to consider before year's end (LA Times 20 December 2017)
- New Tax Rules: Should You Change Your Charitable Giving Plans? (Schwab.com 21 December 2017)
Update(s) / The Latest
On January 18, 2018, the Marketplace Morning Report radio program from PRI (Public Radio International) spoke with Allan Sloan who shared two strategies for lowering your income tax through charitable giving. Click here to listen to the podcast, or read Sloan's full article which appears in the Washington Post.
You might be interested in
