Some Facts About the New Tax Law
posted by HLA_admin - 01/31/18

A recent article in Forbes reports on America’s new Tax Cuts and Jobs Act.  The new Tax Policy Center estimates that this legislation will shrink the number of households claiming an itemized deduction for their (charitable) gifts from about 37 million to 16 million in 2018.  
“Overall, the TCJA will reduce the marginal tax benefit of giving to charity by more than one-quarter in 2018, raising the after-tax cost of donating by about 7 percent.”
The recent Tax Act makes four big changes that are predicted to affect charitable giving including:
  1. Lowering individual income tax rates
  2. Capping the state and local tax deduction at $10,000
  3. Increasing the standard deduction for singles and couples
  4. Increasing the estate tax exemption to $22 million for couples
“Of course, people don’t give to charity just to get a tax deduction.”
Millions of donors will continue to contribute. However total giving is expected to decrease by 4-6% in 2018.
Read more . . .

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