December 05, 2019
How Charitable Giving Can Lower Your 2019 Tax Bill
- Tax Benefits
Source: US News | Re-Post Fight for Life Foundation 12/5/2019 –
With the arrival of Fall, many are starting to think about their 2019 tax bills.
One popular method of offsetting taxable income – charitable deductions – has become a point of confusion for Americans as a result of some of the recent changes to federal tax laws.
Many who have routinely donated in the past are questioning whether they can still do so while also taking advantage of itemized deductions. The short answer is yes.
However, it only makes sense to do so if all your itemized deductions exceed the standard deduction. In 2019, that is $24,400 for married couples filing jointly, $18,350 for heads of households and $12,200 for single people or married individuals filing separately.
Most, of course, pursue philanthropy due to a passion for organizations or causes that are near and dear to their heart, not because they want a tax break. But depending on your situation, these three giving strategies could allow you to both fulfill your charitable goals and create tax efficiencies within your financial plan:
- IRA RMDs to 501(c)(3)s
- Donor-advised funds
- Gifting highly appreciated stock