Are Donations Tax-Deductible?

With all the changes to tax law, it can be quite confusing as to whether or not certain things are still tax-deductible. One of the most talked-about has been for charitable donations. In the past, taxpayers could write-off up to $500 of gifts a year. This was an excellent way to lower the amount of taxable income and save a few dollars on how much you would owe come tax time.

The good news is that yes, donating to charities, is still tax-deductible. In 2017, when the tax reform hit, charities saw a decrease in giving because there was less incentive for taxpayers to donate — the reason being that the standard deductions went up. For the head of household, it went up to $18,000 and for married couples $24,000. This made it seem almost irrelevant to take the time to itemize because it only sought too much for what you could get back if it were even worth it.

You can expect the same situation for the next six years that the tax law is in effect. While up until 2025, these deductions will remain, you can still take advantage of donating to a charity. While you may or may not be itemizing, it is never the wrong choice to give away items you no longer need. 

Is it Still Worth it To Donate?

While tax reforms have made more taxpayers choose the standard deductions versus itemizing, it could still be worth it to select an itemized. However, it is essential to note that you can’t take a deduction for giving to charity if you go with the standard deduction. For many, it might not be the most beneficial choice to go with itemized, but it is always worth it to donate to a good cause.

Who Should You Use?

With so many charitable organizations out there, it can be challenging to decide who to give to. If you are searching for one that makes it easy to get rid of items Pickup Please is a great choice. Donations go toward the Vietnam Veterans of America fund. Their service will pick up within 24-hours that you request one. They will only pick up household items and are limited in what they will and won’t take. For example, they don’t accept tires but will pick up many things that are light and able to carry by one person. Once a driver comes to collect the items, they will leave a tax receipt in its place usable during tax time.

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Created on Oct 31st 2019 23:28. Viewed 366 times.

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