In the past, you may have itemized your charitable donations to gain tax benefits. However, with the recent Tax Cuts and Jobs Act passed, the standard deduction is significantly higher ($12,000 for individuals and $24,000 for couples who file jointly) and it may not be worth the effort of itemizing. Your new higher standard deduction will lower your taxes even more than declaring itemized deductions.
Soundmark Wealth Advisor, James Nevers, suggests an alternative strategy to gain benefits from your charitable contributions in the SELF magazine financial planning guide, What Financial Planners Want You to Know Before You Donate to Charity.
For more questions on how to maximize your tax benefits, contact us. We are here to help you develop a plan and implement the strategies best suited for you and your family’s goals.
About Soundmark Wealth Advisor, James Nevers