
By Bill Canty
Charitable giving is a great thing to do regardless of whether or not you are able to realize a tax benefit.
However, if you can help others and realize a tax benefit this is a good thing and might even allow you to give a little bit more. Here are some things to know in trying to maximize the tax benefits of charitable giving.
The standard deduction is a reduction in taxable income available to all taxpayers regardless of whether or not they can itemize deductions or have any tax credits. For 2022, the standard deduction is: Single and married filing separately, $12,950; married filing joint, $25,900; and head of household, $19,400.
If you have itemized deductions in excess of the standard deduction, you can deduct that amount from your taxes. Examples of itemized deductions include: property taxes, state income taxes, mortgage interest, medical expenses and charitable contributions.
Charitable contributions can be made in a number of ways that can qualify as an itemized deduction. These include direct gifts of cash, gifts of securities like stocks, mutual funds, and ETFs, and gifts of property such as real estate, art, and collectibles.
The amount that can be deducted as an itemized deduction is as high as 60 percent of adjusted gross income for some cash donations, dropping to 50 percent or as low as 20 percent for other types. This percentage can also vary by the type of organization.