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I'm not saying that a taxpayer does worse...they usually don't. I'm saying that then the end of the year comes around, many of us donate to charity and we are more generous when we think "hey, we can write this off". I know that is how people think and most charities appeal to that.
It would amaze me if charitable giving doesn't drop quite a bit in 2019 - I say 2019, because many people don't know about this yet.
To be honest I'm giving less this year. It also incentivizes me to give more money to politics and partisan efforts as opposed to community efforts because both are treated the same.
I've itemized my entire life. But no more. This will be the first year I don't.
WTF? You can still itemize and it is recommended you do if your write offs exceed 12k.
I'm not saying that a taxpayer does worse...they usually don't. I'm saying that then the end of the year comes around, many of us donate to charity and we are more generous when we think "hey, we can write this off". I know that is how people think and most charities appeal to that.
It would amaze me if charitable giving doesn't drop quite a bit in 2019 - I say 2019, because many people don't know about this yet.
To be honest I'm giving less this year. It also incentivizes me to give more money to politics and partisan efforts as opposed to community efforts because both are treated the same.
I've itemized my entire life. But no more. This will be the first year I don't.
I don't think that way. Waldo says they do not think that way. I don't think I would brag about giving more to politicians than the needy because that is what benefits you the most. I would keep that to myself.
I don't donate to charity though but only because I have a disabled sister to take care of.
Considering I'm robbed at gunpoint for "charity" I need to keep all the money I can afterwards to run my own private charity (my sister).
Suppose no one pays taxes. No more roads repaired. No police. No libraries. No military. No schools. No government, which means all prices will rise. Most hospitals will close. Many, many more negatives.
I'm not saying that a taxpayer does worse...they usually don't. I'm saying that then the end of the year comes around, many of us donate to charity and we are more generous when we think "hey, we can write this off". I know that is how people think and most charities appeal to that.
It would amaze me if charitable giving doesn't drop quite a bit in 2019 - I say 2019, because many people don't know about this yet.
To be honest I'm giving less this year. It also incentivizes me to give more money to politics and partisan efforts as opposed to community efforts because both are treated the same.
I've itemized my entire life. But no more. This will be the first year I don't.
Agree with this 100%. I keep hearing charities still touting the tax benefits but most people have no idea it's going to go away, for the most part. I will not be itemizing either.
The deductions are still deductible except you may get an even higher standard deduction.
I think few people give to small charities for the tax writeoff. A married middle class taxpayer making 70,000 probably has a marginal rate of around 10-12 %. Do you think when someone gives 50 bucks to a food kitchen they are thinking this will save me 5 bucks?
Large donations to large charities tax planning is a factor but the high income people are not taking the standard deduction.
Nope. It's middle to high earners who will slow down their giving. My effective rate is 40%. You better believe I am going to slow down my contributions, especially since my taxes will be going up around 8%, depending on my income. That doesn't include the pending state and property tax increases that we Illinoisans are so fortunate to have coming now that the Democrats have a supermajority again. Guarantee you will see a slowdown in charitable giving in and around April.
I figure in giving 40% of every dollar I make to the government, I will let them handle the poor.
I'm not saying that a taxpayer does worse...they usually don't. I'm saying that then the end of the year comes around, many of us donate to charity and we are more generous when we think "hey, we can write this off". I know that is how people think and most charities appeal to that.
It would amaze me if charitable giving doesn't drop quite a bit in 2019 - I say 2019, because many people don't know about this yet.
To be honest I'm giving less this year. It also incentivizes me to give more money to politics and partisan efforts as opposed to community efforts because both are treated the same.
I've itemized my entire life. But no more. This will be the first year I don't.
what you can and cant write-off should not be the determining factor to your contributions to charity
as to itemizing or not, I was taught many decades ago, work up your taxes both ways..the std. ded. and itemizing
I usually itemize, because with itemizing my deductions are about 19k, where as the std. ded. was 12k...now with the std. ded. being 24k, if the math works out that my itemizing is still only 19k, it would be foolish to itemize, just take the std. ded.
giving money to politics is never a smart thing to do, no matter which side of center you fall
You tell us. How many? A third of taxpayers have been taking the standard deduction all along. Why would they save receipts? Are there any studies that show that group doesn't donate to charity?
There are studies that show charity giving will drop, yes.
How much is an open question. AND, the studies suggest (and it makes sense) that smaller charities will be hurt the most. This is due to a couple things...
1. Large charities often get big grants - some even have large bank accounts and investments and work off the interest....
2. Large charities and their donors rely on corporate donations - which are still written off.
3. Larger donations are probably made (churches aside) by folks with larger incomes, which will still itemize.
The new law means that even many people who make 100 or even 150K may not itemize....after all, they can't deduct the taxes from their 2nd home any longer and other stuff that relates to the new law.
I mean - it just takes some common sense...which may not be common as I am getting replies like "We came from aliens (sic)" - "I don't believe in taxes" and "I think people will give just as much in a terrible market year and if they can't deduct".....none of which really seem accurate.
In this case I trust my gut. Just like I trust it....when I think I am not going to buy a new iphone (I was going to).....and the news says millions are not going to buy a new iphone. The reason is simple - my brokerage statements and chaos.
It's not a reach to say non-deductions mean less for small charities. The proof will be in the pudding so let's meet back here after 2019 and see what happens. I would be happy to be wrong...but I am usually not (my wife of 45 years gives me a 95% rating....right most of the time...and she has high standards!).
The new tax laws make it so most households will not itemize - therefore it does away with the ability to deduct your charitable contributions. This will surely means large declines in the amount of money that most people (individually) give.
" New Tax law will likely hurt small charities the most
Estimates say the law will lower the amount of charitable giving in the country–especially to organizations that get small donations from local donors."
So, pro or con....???
Charity starts at home but charity is going everywhere else but...
Sound like surveys and polls, hard to study something that hasn't happened. But I'm not saying that there will be no effect but my gut says it will not be as much effect as charities are warning about. Did your gut account for the possibility that less total tax due for many people might actually lead to more donations?
Donating to charity never results in more money in your pocket. Are people really giving away a dollar to save a quarter on taxes owed? Or are they giving away a dollar because they have a spare dollar and want to help? If the new standard deduction is more than the itemized deductions in the past, then they will owe less taxes than before andthis have more money in their pocket to give.
Suppose no one pays taxes. No more roads repaired. No police. No libraries. No military. No schools. No government, which means all prices will rise. Most hospitals will close. Many, many more negatives.
Those things can be funded by the private sector. Supply and demand will sort it out.
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