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New Ways to Give to Charity While Getting the Best Tax Breaks

May 27, 2024

With such a high standard deduction, taxpayers may not get additional itemized deductions for charitable donations. However, with a little clever planning in charitable giving, taxpayers can exceed the standard deduction, start itemizing again, and lower their tax bill.

Consider “bunching” deductions. Are you interested in giving to charity, but concerned about how the new tax plan limits your ability to deduct those contributions? An old method called “lumping” or “bunching” is making a comeback! This method involves “lumping” two years of charitable and other deductions into one single tax year. For example, if you make charitable donations in January and December of the same year, you may be able to itemize those deductions in that year to exceed the increased standard deduction for that year. The next year, take the standard deduction and forgo itemizing.

Please click on the full article for more details on this strategy.

For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.