The new tax law has been forecasted to result in $21 billion less in charitable giving in the coming year. As an estimated, 95% of Americans will now take the standard deduction rather than itemize, few will see a tax advantage for charitable giving in the coming years. Therefore, it might be beneficial to make your charitable donations before December 31st.
Charitable donations can include in-kind donations to the Salvation Army or Goodwill, as well as monetary donations to religious and other nonprofit organizations that qualify as 501(c)3 organizations under the IRS code.
Another popular donation is a yearly membership. Some or all of the costs of memberships to organizations that qualify as nonprofit 501(c)3 organizations such as the Chicago Botanic Gardens, Children's Museum, Shedd Aquarium, and Lincoln Park Zoo among many others can be tax deductible. Often times, the cost of a family membership can pay for itself in as few as two visits for a family of four.
Just remember to keep your receipts for these expenses in a safe place so that you can provide documentation for the tax deduction when you file your income taxes.
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If you have any questions regarding your personal taxes and other exemptions you may qualify for, please feel free to contact Glick and Trostin, LLC at 312-346-8258.