The law on reducing income and employment taxes, which was enacted in the last few days of 2017, is contrary to the rumors that deductions for charitable donations or charitable tax deductions 2018 have not been cancelled (non-profit organizations). However, the effects of the law will be very similar. The reason is almost double the standard deduction, which is part of the new law (and will affect your tax return from April 2019 and beyond).
The standard deduction is that the taxpayer can reduce the amount of adjusted total income (AGI) reported in the tax return. According to the previous rule, the 2018 deduction standard will be 6 single taxpayers and married taxpayers submit separate returns of $500 and $000 13 who filed a joint tax return for married taxpayers.
The 2018 “tax law” modified the standard deduction, which actually raised the retail threshold. The handling of car donations and other charitable donations has not changed, as allowed. However, to get the financial benefits of taxation, you need to deduct more from the standard deduction.
Under the new law, separate return deductions (charitable tax deductions 2018) for single taxpayers or married taxpayers will be raised to $00 12 for a combined tax return for married taxpayers and couples will be raised to $24,000.
For many UN taxpayers, this increase means that simply taking standard deductions is more economical than detailing federal income tax deductions. Donations to charities are part of the deductions (charitable tax deductions 2018) that taxpayers can specify.
Of course, not everyone who donates to a charity can cut taxes. However, a study conducted by the independent department and the Lilly Family Charity School and the Tax Policy Center allowed such incentives to be fully developed, especially at the end of the year. It is forecast to reduce by $13 billion to $20 billion annually.
American charities are of course very worried. Donors are expected to be aware of their urgency and donate without considering tax cuts. Tax experts also recommend that potential donors consider the following benefits:
Appreciate investments, such as stocks. This allows the donor to deduct the total market value of the investment (subject to certain restrictions) without paying capital gains tax on capital gains.
Contribution through the Individual Retirement Account (IRA). For donors aged 70 and over, contributions directly to assets below $100,000 can be included in the annual allocation required by the IRA and are not included in their taxable income.
Make huge charity gifts! At any time, your total contribution to a qualified non-profit organization may be high enough that the determination of the details makes sense for you again. Of course, this is not for everyone, although some contributors may wish to do the next year, do nothing or do nothing, and make a good gift in the second year. (It goes without saying that charities are also concerned about the results of opinions outside this year).
If there are other unusual factors in your tax situation, you can choose a standard deduction that does not rely on other reasons and benefit from charity deduction as before. Consult a tax expert for more detailed advice and strategies.