If you're a generous person—someone who gives to causes you care about—recent changes to federal tax law could affect how you give, and how much of a tax break you get for it.
Here's what's worth knowing. First, if you don't itemize on your tax return, there's now a small new deduction available—up to $1,000 if you file alone, or $2,000 for couples. That's new, and it's a benefit many people haven't heard about yet.
If you do itemize, the rules got more complicated. There's now both a floor and a cap on charitable deductions, which means timing and strategy matter more than ever.
One smart option many people are discovering: donor-advised funds. Think of them as a charitable savings account—you contribute now, get the tax benefit, and grant to causes over time.
Local community foundations, including ours, offer these funds and can help you make the most of your giving.
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.