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The Tax Cuts and Jobs Act of 2017 trimmed tax rates and significantly boosted the standard deduction, thus greatly reducing the number of taxpayers eligible to benefit from charitable deductions.
According to J.P. Geisbauer, a Certified Public Accountant (CPA) at CenterPoint Planning, “With [the] standard deductions as high as they are… and the $10K state and local tax deduction ...
The taxable income of the donor is reduced by $300. If the donor's income was in the 35% income tax bracket both before and after the deduction, the donor's tax liability (amount of taxes owed to the government) is reduced by $105.
According to the latest Giving USA Annual Report of Philanthropy, charitable giving by American individuals in 2018 totaled about $292 billion. -- Consider donations for conservation purposes.
By claiming charitable donations as tax deductions on Form 1040, Schedule A, Itemized Deductions, instead of claiming the standard deduction, you could even lower your taxable income.
Although the federal deadline for filing a federal income tax return is not until April 15, 2024, if you wish to make a tax-deductible donation, the deadline is Dec. 31, 2023. What this deadline ...
You might be able to take a deduction if the money you give exceeds the fair market value of what you get in return, but you have to be careful. Your final step is to get a receipt for your donation.
The standard deduction: Most people take the standard deduction, the IRS explains, which allows you to subtract a set amount from your income based on your filing status: $14,600 for single filers ...
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