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The Tax Cuts and Jobs Act - What it could mean for you

Tue, Mar 6th 2018 11:00 am

 

On December 20, 2017, Congress signed into law the new Tax Cuts and Jobs Act, creating sweeping changes which will lower the number of taxpayers who itemize starting in 2018.

The new law provides a modest decrease in individual tax rates, while also increasing the standard deduction for both individuals and joint filers. The standard deduction for individuals is now $12,000 and for married couples is now $24,000.

So, with the increase in the standard deductions, the result will be that more tax filers will not qualify as itemizers and no longer will deduct their charitable giving.

Good news for Seniors:

For Seniors, age 70 ½ or older, there is a way to control your tax rate and limit your income without itemizing deductions and still take advantage of the increased standard deduction. This is the IRA Qualified Charitable Distribution (QCD), a provision that became permanent in 2016.

By donating from your IRA minimum distribution directly to the Homes of Charity, you in essence never received the income, therefore your tax rate is unaffected. This option doesn’t provide a tax deduction, but simply avoids raising your annual income and potentially your tax rate after taking your standard deduction.

Remember, before making an IRA Qualified Charitable Distribution or any other planned gifts to the Homes of Charity, please consult with your accountant and/or financial planner.

To learn more about charitable giving to OLV Homes of Charity or to receive a copy of our Gift Planning Guide, please contact a member of our development staff at (716) 828-9610 or email us at [email protected]