Like many of my clients, you may be wondering how the new tax law will affect your charitable giving. Will you still get a tax write off? Well, it depends.
The standard individual deduction is now $12,000 per year ($24,000 for a couple). If your itemized deductions, including charitable contributions, do not exceed that amount, you lose the tax benefit of your charitable deduction in that year.
If you're interested in both supporting your cause and maximizing tax benefits you may want to consider "batching" contributions. For example, if your annual donations in any year aren't enough to surpass the standard deduction, they may want donate a greater amount every other year to surpass the standard deduction and qualify for a tax write-off.
If your itemized deductions exceed the standard deduction, you will continue to enjoy the tax benefits of donating. And the new law makes no changes to the tax advantages of giving appreciated stock, charitable gift annuities, your annual IRA Required Minimum Distribution (up to $100,000 per year) as well asother tax-qualified deferred gifts.
Most of us don't make donations just for the tax write-off, but it's a welcome benefit. Given the tax law changes, a visit with your adviser to update your charitable giving strategy may be a good idea.