Tax season is in full swing, and as taxpayers are completing their tax returns, they are seeing first-hand the effects of the tax law changes under the Tax Cuts and Jobs Act. Many individuals and families have had to rethink their giving strategy to ensure they can still take advantage of the tax benefits associated with charitable giving.
The standard deduction for individuals is now $12,200, and for couples filing jointly, it is $24,400. This means that a couple likely will not deduct their charitable donations if their total itemized deductions are less than $24,400.
Paired with a donor-advised fund, a tax strategy known as bunching could allow you to continue to consistently support your favorite 501(c)(3) public charities while still reaping the tax benefits associated with giving.
Our President & CEO Debbie Wilkerson discusses bunching in the video below.
Authored by: Ashley Hawkins, Content Specialist
The Community Foundation does not provide tax, legal or accounting advice. You should, of course, work closely with your individual financial advisor and tax professional to determine how you can continue financially supporting nonprofits while maximizing your giving with a donor-advised fund.