Tax Law Could Have Charitable Ripple Effects on Tax Returns
The Tax Cuts and Jobs Act may create some unexpected issues for charities
A new report from the American Enterprise Institute makes the case that the Tax Cuts and Jobs Act (TCJA) could create some unexpected issues for charities.
AEI’s report, Charitable Giving and the Tax Cuts and Jobs Act, argues that the new tax reform law will lead to a 4 percent decrease in charitable giving—a collective cost as high as $17.2 billion. That drop will predominantly be caused by an increase in the number of people who take the standard deduction, which has almost doubled in size. AEI notes in the report [PDF] that the deduction increased from $6,300 to $12,000 for single adults and went from $12,600 to $24,000 for married couples.
“As a result,” report authors Alex Brill and Derrick Choe write, “many taxpayers who otherwise would have deducted their charitable donations as itemizers will now claim the standard deduction and not receive a tax incentive for giving.”
Please select this link to read the complete article from Associations Now.