The short answer is no, you cannot take charitable tax deductions without itemizing. However, there are strategies that can help you itemize your deductions to take full advantage of your charitable giving. One such strategy is bunching, which involves combining multiple years' worth of charitable contributions into a single tax year to surpass the standard deduction limit and itemize your deductions.
For example, if you're a single taxpayer who donates $7,000 to charity each year, you may find that your charitable contributions alone don't exceed the standard deduction threshold of $13,850 for the 2023 tax year. However, by bunching two years' worth of contributions in a single tax year, you double your charitable contributions to $14,000, thereby exceeding the threshold.
This is where a donor-advised fund (DAF) like Daffy comes in. Daffy makes it easy to bunch charitable contributions. You simply contribute the amount you wish to bunch to your Daffy fund and immediately receive a tax deduction for that amount. Then, you can distribute the funds to your desired organizations whenever you're ready to give. This way, you can continue to donate $7,000 annually in both 2023 and 2024 by using the funds you set aside in Daffy.
By maximizing your charitable tax deductions with Daffy, you can reduce your tax bill while also supporting the causes that are most important to you. If you're interested in learning more about how to maximize your charitable tax deductions, be sure to check out our complete Charitable Deductions Tax Guide.
Please note that the information contained in this blog post is for educational purposes only and should not be considered tax or investment advice. To assess your specific situation, please consult with a tax and/or investment professional.
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Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.