By changing the way you itemize your taxes, it could lower your tax bill.
Charitable giving isn’t motivated by getting tax deductions, but it doesn’t hurt either. By itemizing your taxes, you could end up saving more, which can go right back into other charities you support. Debra Taylor, CPA/PFS, JD, CDFA, breaks down different strategies on how to file charitable giving when tax time comes. Because of the increased standard deductions, experts are getting creative with how to maximize this new limit.
These strategies include “bunching” deductions, which means combining multiple years of giving into a single year. She also explains Donor Advised Funds (DFA) which allows you to make multiple years’ worth of gifts in a single year and then disperse gifts later. There are options for IRA owners to make qualified charitable distributions which you can also talk to your financial advisor about. If you don’t have a financial advisor in the Grand Rapids area feel free to reach out for our recommendations.
For more information, please view and download the PDF below.