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Watch this exclusive video featuring Jonathan Curry-Edwards, CPA on ways to help you maximize the tax benefits of your charitable contributions.
Read the Transcript
It’s something that individuals can take advantage of right away, and if the law changes, they can adjust their planning accordingly.
Individuals can maximize the tax benefit of their charitable contributions with some careful planning. Beginning in 2018, the Tax Cuts & Jobs Act increased the standard deduction for an individual to $12,000 or $24,000 for a married couple filing jointly. It also made changes to itemized deductions, including capping state and local tax deductions to $10,000, limiting the home mortgage interest deduction and suspending miscellaneous itemized deductions.
Individuals who will give their usual charitable contributions, who still benefit from the standard deduction, should consider combining multiple years of charitable gifts into a single year to maximize that tax benefit. They can contribute to a donor advised fund or a private foundation to get the tax deduction in the year of contribution and decide how to distribute these funds to charities later on — and then in future years, they can take advantage of the standard deduction.
Contact your Friedman tax advisor to begin discussing ways to optimize your charitable giving strategies.
Watch More Videos from this Exclusive Nine-part Series:
- Maximizing the Tax Benefit of Your Charitable Contributions with Jonathan Curry-Edwards, CPA, Principal
- Opportunity Zones with Steven Bokiess, CPA, Partner
- Transition Toll Tax with Edward Ajodah, CPA, JD, Principal
- Tax Reform's Impact on the States with Tom Corrie, JD, LLM, Principal
- Partner Audit Rules with Michael J. Greenwald, MPPM, CPA, Partner
- Global Intangible Low Tax Income (GILTI) with Ryan Dudley, CPA, CA, CTA, MIT, Partner
- Foreign Derived Intangible Incomes (FDII) with Erasmo Bruno, LL.M., JD, CPA, Partner
- Using 529 Plans to Pay for Education Costs with Jonathan Curry-Edwards, CPA, Principal