Giving money to a New York charity has long been one of the very best ways to make a reliable deduction on your taxes. The rules for this sort of giving have been revised to reflect the latest tax standards. There are two new rules that you will need to pay close heed to. These extend the tax treatment for qualifying charitable cash contributions.
Charitable giving rules have been amended
Charitable giving and tax planning rules have been slightly altered for the purposes of the upcoming tax season. The first change reflects the fact that you can now deduct up to $300 if you are either single or married but filing separately. The limit will now be $600 if you are married and filing jointly. These rules will extend to all cash contributions made to charities that qualify under the terms of this arrangement, even if you have not itemized them.
The second change concerns what happens if you do choose to itemize. In this case, you will be able to claim charitable contribution deductions for all cash contributions that you make. This can extend up to a full 100% of your adjusted gross income.
Important points to keep in mind
These are very worthy deductions to consider, especially if you are a high net worth filer. If this is the case, you should know that all you have to do is choose a charity that has met the basic qualifications to be applicable under current tax law.
Once you have determined this, your field of action is clear. Being aware of these new tax rules can help you plan out your charitable giving for the year and can help you adhere to a solid tax strategy.