As we kick off the first filing season under the Tax Cuts and Jobs Act, which was signed into law in December 2017, there are questions about how it could affect charitable giving. While Americans are incredibly generous, and most people give to charity because they want to help, the tax code does affect giving. (Source: Black America Web, Mellody Hobson) While one of the objectives of the 2017 legislation was to make the tax filing process easier by increasing the amount of the standard deduction, it also reduced the number of people who will use itemize deductions, including charitable donations. Many experts believe this will result in a decrease in giving.
So basically when we give, it will increase our tax burden unless we give a sizable amount! But that does not necessarily mean that we should stop giving though! There are many ways to give and still not lose out! Click the link below for some pointers on how we can become smarter givers!