In 2023, you can deduct up to 60% of your adjusted gross income (AGI) through charitable deductions. This includes not only cash donations but also donations of property such as clothing or household goods. You can also donate appreciated assets like stocks, ETFs, or mutual funds, which allows you to avoid paying capital gains tax on the appreciation while still receiving a tax deduction for the full value of the asset. The limit for deducting charitable donations of appreciated assets is 30% of your AGI.
With the recent 2023 IRS updates and personal changes like a new job, home, or medical expense, it's a smart time to tune up your tax strategy. This is where Daffy comes in. Daffy is a great option for a Donor-Advised Fund (DAF), helping you maximize your charitable contributions and continue making an impact on the causes and organizations you care about.
The standard deduction has increased for all filing classes in 2023, making it harder to itemize your deductions. However, Daffy can help you strategize to itemize deductions so that you can take full advantage of your generosity.
Remember, you can't take charitable tax deductions without itemizing. But don't worry, Daffy is here to help you navigate these changes and make the most of your charitable giving. Start giving and saving more with Daffy today.
For more information, check out our complete Charitable Deductions Tax Guide for 2023 on our website.
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.