New rules for getting the most out of charitable giving

Most people no longer get a tax deduction when they donate to charity. This shouldn’t stop you from donating, but you might want to change your approach.

Typically, only taxpayers with itemized deductions can write off charitable contributions. The vast majority of taxpayers took the standard deduction instead, which was nearly doubled under the Tax Cuts and Jobs Act of 2017. (Temporary rules in the pandemic relief legislation that allowed taxpayers to deduct $300 in contributions in 2020 and 2021 without itemizing them have expired.)

It never makes sense to donate just to get a deduction. For example, if you fall into the 22% federal tax bracket, you’ll only save 22 cents on every dollar you donate. But if you’re charitable at heart, there may still be ways to get a tax deduction for your generosity through some schemes, or you can rethink how you give.

Donor-Advised Funding Isn’t Just for the Rich

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