There are some changes to be aware of regarding charitable deductions that will take place next year as follows:
Above the Line Deduction
You can deduct charitable contributions up to $1,000 or $2,000 if filing jointly even if you do not itemize. This deduction has been made permanent and was temporary a few years ago.
Floor on Deductions if You Itemize
If you itemize your deductions and make charitable contributions, you can only deduct contributions if the amount exceeds .5% of your adjusted gross income.
Floor on Charitable Deductions for Corporations
For corporations, deductions are allowed if they are greater than 1% of the corporation’s taxable income, and the maximum deduction is limited to 10% of taxable income. The ceiling is already an existing rule.
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