Do you claim itemized deductions? If so, you may be wondering how the tax reform will impact charitable contributions. One misconception about tax reform is that charitable deductions are no longer deductible. While they are still deductible, there are three items to consider:
- The Standard Deduction has been doubled to $24,000 for a married couple. In order to benefit from charitable contributions, your total itemized deductions will need to be greater than $24,000.
- The limitation on deduction for cash contributions to public charities is now 60% of AGI, previously 50%.
- Donations to Universities in exchange for athletic seating rights (i.e., Tide Pride, Tigers Unlimited, Seminole Boosters, The Georgia Bulldog Club, etc.) are no longer deductible. Previously, taxpayers were able to deduct 80% of amounts paid.