The 2017 Tax Cuts and Jobs Act changed both the standard deduction and itemized deductions for taxpayers. The standard deduction became much larger – almost double what it was previously. And, itemized deductions have new limits on deductible state and local taxes and mortgage interest. This makes it likely that many more taxpayers will choose the standard deduction starting in 2018, rather than itemizing deductions.
This shift potentially affects not-for-profit organizations, as taxpayer contributions may no longer reduce their personal income taxes. What can charitable organizations do to offset the potential negative impact on donations?
Read on for ideas on how organizations and individuals who care about them can approach the new changes.
Please contact Sandy Abalos or Jimmy Trujillo if you have questions about this issue or want to learn how REDW can assist with personal or business tax-related matters.
