WAUSAU, Wis. (WAOW) — The last week of the year is a popular time for donors to give to charities, because of year-end tax breaks that are included as well. Increases in standard deduction amounts are set to go into effect during tax season in 2019, which can make itemizing donations an issue. For charities, this can make getting those year-end contributions difficult.
One tax expert wants you to be aware of itemizing and the new standard deduction amounts.
“When you itemize you take all the expenses that you had from the year, and if they exceed your standard deduction we claim the itemized deduction. It creates more non-taxable income,” said H&R Agent Steve Kaquatosh. “Your total itemized deductions need to exceed the standard. Depending on your filing status; it’s increased from single which used to be $6,350. Now it’s 12,000 so that’s single or married filing separate. Married filing joint went from $10,400 to $24,000. Head household went from $9,350 to $18,000.”
The Women’s Community, Inc. is a local charitable organization that could be directly effected by the new tax reform. However, they’re hoping people will still continue to give to charities from the heart.
“I’d like to think that we’re not going to be that effected,” said The Women’s Community, Inc. Executive Director Jane Graham Jennings. “People are still going to believe in things that they support and still be apart of that, because people give for what they believe in. It’s not just about tax deductions.”
Bundling is another factor, which is the act of donating every two or three years instead of on an annual basis. The purpose of bundling is to try to maximize deductions that exceed the standard amounts.
“If people move to bundling for tax purposes, it’s going to effect every other year bottom line of organizations that rely so heavily on the generosity of community members,” said Jennings.
Tax experts also advise keeping all receipts, updating your W-4’s, and contacting a tax advisor for any questions regarding the new tax changes.