When Can Your Giving Give Back?

When Can Your Giving Give Back?

When you look at the headlines in your news feeds, it would easy to conclude not much is going well in America, or the world, for that matter.   The media conveys the most shocking events to capture our attention.   Stories of puppies, as good as they are, just don't draw people in like political scandal, or a chemical factory leak. 

But, there is a lot of good going on around us everyday.  For all the news of America becoming more divided, there are countless examples that demonstrate people care for one another, and are finding ways to care for their fellow citizens.   Consider that in 2017 Americans donated over $410 billion to charities.   I hear what you are thinking..."isn't most of that given by wealthy corporations?"    While corporations are very generous, more than one-half of giving in America comes from individuals and families.   Yes, you are making a difference!

Under the current Tax Cuts and Jobs Act law, many Americans continue to give even though they are not getting tax benefits from their giving.   In 2020, a married couple would need to have itemized deductions (e.g. real estate taxes, medical expenses, charitable giving) that exceed $24,800 before there would be any advantage of gathering up all those receipts of medical bills and charitable gifts.  But, all is not lost.   There are ways you can continue your charitable spirit, and get tax benefits.   Here are just a few ideas:

  • Bunching your tax deductions.
  • Using donor-advised funds for giving. 
  • For retirement plan owners over the age of 70 1/2, using the Qualified Charitable Donation (QCD). 

Click Here for the Anchor Pointe 2020 Charitable Giving Strategies

 

In  spite of claims that America has failed in its stature, or world standing, I disagree.   Americans continue to demonstrate compassion in staggering ways, not just to our citizens, but around the globe.   Keep giving and you will receive.   You will feel the sense of pride of helping elevate someone else, and if you do it correctly, get some nice tax benefits along the way.    Let's talk if you have questions about your charitable giving, and how it can benefit you under the current tax law. 

 

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