Don't Be a Scrooge: Give and Be Rewarded for Giving
Retirement Daily Guest Contributor
By Rebecca Kennedy
The Tax Cuts and Jobs Act (TCJA) of 2017 raised the standard deduction from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples. As a result, the Congressional Budget Office estimates that the number of households who itemize deductions on their federal tax return will shrink substantially and that approximately 85% to 90% of American households will simply elect the standard deduction under the new law. This means it's going to be harder to reap any personal tax benefits from certain large expenses, such as a mortgage, out-of-pocket medical costs, and specifically, charitable contributions. However, with some careful planning people can still be rewarded for their altruism.