If the 2018 tax reform has you wondering how to maximize your charitable donations, let our calculator do the math.
The Tax Cuts and Jobs Act brought big changes when it passed in December 2017. The standard deduction has nearly doubled, and many itemized deductions were capped or eliminated completely.
The good news is that charitable donations are still tax deductible for those who itemize. So even though the standard deduction has increased, donors may find they can maximize their tax benefits through itemized deductions by using what’s called a “bunching strategy.”
Bunching means concentrating several years' worth of your charitable donations into one year, itemizing that year to benefit from extra tax savings, then taking the standard deduction over the next few years. And it can make a lot sense—but only when the math adds up. Would it be effective for your situation? Let’s run the numbers.