If charitable giving hasn't felt like something that fits your budget, recent changes to the tax law might change that.
For the first time, people who take the standard deduction—rather than itemizing—can now deduct charitable gifts on their federal tax return. Up to $1,000 if you file alone, or $2,000 for couples. It's a small but meaningful shift that makes giving a little more accessible for everyday people.
And here's something worth knowing: if you're 70½ or older with a retirement account, you can donate directly from your IRA to a charity—up to $111,000 per year—without that money ever counting as taxable income. It's called a Qualified Charitable Distribution, and it's one of the most tax-friendly ways to give, regardless of whether you itemize.
If either of these sounds like it could work for you, talk to your tax advisor—because the best gift is one that works for your bottom line, too.
This content is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.