This week, Craig Siminski, of CMS Retirement Income Planning, shares an article discussing how IRA owners who are 70½ or older can give to charity without itemizing and still get a tax break:
The Tax Cuts and Jobs Act nearly doubled the standard deduction beginning in 2018 and indexed it annually for inflation through 2025:
$12,950 for single taxpayers and $25,900 for joint filers in 2022; $13,850 and $27,700 in 2023.
The result was a dramatic reduction in the number of filers who itemize — from 30.6% of all returns in 2017 to 9.5% in 2020.
As the number of itemizers fell, so did the amount individuals gave to charities as a percentage of total annual contributions.
According to Giving USA, the total amount dropped below 70% for the first time ever in 2018 and remained there through 2021.
Although the primary motivation for charitable giving usually comes from a desire to give back, an associated tax break can be a strong supporting factor.
If you are an IRA owner who is 70½ or older, you may be…
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Craig Siminski is a CERTIFIED FINANCIAL PLANNER™ professional, with more than 25 years of experience. His goal is to provide families, business owners, and their employees with assistance in building their financial freedom.
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