With tax season behind us, it’s time to reflect on some noticeable changes from the new tax laws. Because so many people were moved to a standard deduction, a much lower percentage of people actually received a tax break for their charitable contributions.
Of course, giving should be first about your beliefs and the cause you donate to, but it is definitely a nice added benefit to receive to tax breaks from giving. If you took the standard deduction this year when you used to itemize, but want that tax deduction with your giving, there is an option available.
It’s in the timing and schedule of your giving: if you double-up what you would normally give and give those amounts every other year, then that gives you a larger charitable contribution deduction in those years. In that way you would alternate every year between itemizing and taking the standard deduction. If you’re fine just giving regularly no matter the deduction, then more power to you.
If you have any questions how we can help optimize your deductions and help with tax planning, click here to speak with a tax professional.