Making cash donations to public charities helps others while also reducing your federal income tax bill. But the new tax law limits how much itemizers may deduct in a given year and expands the amount non-itemizers may claim.
Mandatory Credit: Amber Arnold/Wisconsin State Journal/AP via CNN Newsource
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New rules for how much you can deduct in charitable contributions
If you regularly make donations to tax-exempt charities and non-profits, you should be aware of upcoming rule changes governing how much of your contributions will be deductible. Some of the changes, which are in President Donald Trump’s recently enacted federal tax-and-spending cuts package, affect filers who take the standard deduction. Others affect filers who itemize — which you do when your individual deductions combined exceed the standard.
New rules for how much you can deduct in charitable contributions
If you regularly make donations to tax-exempt charities and non-profits, you should be aware of upcoming rule changes governing how much of your contributions will be deductible. Some of the changes, which are in President Donald Trump’s recently enacted federal tax-and-spending cuts package, affect filers who take the standard deduction. Others affect filers who itemize — which you do when your individual deductions combined exceed the standard.
