Charitable Giving After The Tax Reform

On November 2, 2017, the Tax Cuts and Jobs Act of 2017 was introduced in the House of Representatives and signed into law on December 22, 2017 by President Donald Trump. This amends the Internal Revenue Code (IRC) to reduce tax rates and modify policies, credits, and deductions for individuals and businesses.

The new tax law raises the standard deduction in 2018 to:

  • $24,000 for married couples filing jointly,
  • $18,000 for heads of household filers, and
  • $12,000 for single taxpayers.

There is an additional standard deduction of $1,300 for each married person over age 65 ($1,600 for single taxpayers). The additional standard deduction is also available to taxpayers who are legally blind. The legislation limits the deduction for state and local taxes to $10,000 and eliminates many other deductions. For taxpayers who have no home mortgage interest deduction, the only other common deduction which is preserved is the charitable contribution deduction. Although some changes have taken place, it is important to note that the charitable deduction is still in place.

Here’s what the Tax Cuts and Jobs Act — which will apply to taxpayers starting in 2018 — means for charities and the people who give to them:

  • Try ‘bundling’ donations from several years into one year
  • Charities are bracing for a big drop in donations
  • Open or add to a donor-advised fund to get a deduction — even if you don’t itemize
  • If you’re 70½ or older, consider a qualified charitable distribution from an IRA
  • People can now give more of their cash to charity

We will go over each bullet point, more in-depth over the next few weeks. Stay tuned…

…until then, if you have any questions or want more information call Scott Hartman at 614-443-8893 or email him at

*In need of a Tax ProfessionalFinancial Planner, or Estate Planning Attorney to help you navigate the new tax laws?  Contact us for a referral of one of the members of our Professional Advisors Group.