The Tax Cuts and Jobs Act of 2017 created some significant changes in the tax law. Many of the tax brackets and limits are being adjusted annually for inflation. While the major changes in the tax law happened between 2017 and 2018, there are still some adjustments that did not take effect until 2019.
With a whirlwind of tax code changes that have come into effect this year, below are some opportunities to consider for your 2018 charitable giving plan. Two of the biggest changes are the elimination of personal exemptions and the increase of the standard deduction. Each year, taxpayers have the option to choose between taking the standard deduction or itemizing expenses. You deduct charitable contributions from your income through an itemized expense report and the standard deduction acts as a hurdle rate. If your itemized deductions fall short of the standard deduction, then you should take the standard deduction.