Submitted by Kate Hennessy on December 7, 2019
During this time of year, I think about how grateful I am to have a healthy family. Although our household is hectic, with two young children and a playful puppy, I don’t take our health for granted. While our family makes donations to charitable organizations throughout the year, we tend to donate more of our time and money towards the end of the year. This year our focus will be on charities that provide healthcare and education for children. For those of you that have not made your charitable donations, but intend to do so, I’d like to share three key tips with you:
- Consult With Your CPA – my husband and I met with our tax accountant last month to do year-end planning. We talked about the standard deduction vs the itemized deduction (remember that charitable gifts are tax-deductible). The Tax and Jobs Act which was passed in December 2017, made the standard deduction available to taxpayers much larger than in past years. This change made it less likely that the sum of an individual’s itemized deductions will exceed the higher standard deduction. Close to 90% of taxpayers claim the standard deduction, which is a fixed dollar amount that lowers your taxable income and thus your tax liability. However, if you live in an area with high local taxes or you were very charitable this year, you may benefit from itemizing your deductions.