In 2023, understanding charitable tax deductions is crucial for those who regularly donate to charitable organizations. Here are the four most important things you need to know:
1. You can deduct up to 60% of your Adjusted Gross Income (AGI) through charitable deductions. This makes the charitable deduction one of the most generous deductions in the U.S. tax code.
2. The IRS has updated tax brackets due to inflation. This means it may be easier for you to qualify for a lower tax bracket, which can impact your deductions.
3. Donating appreciated assets, such as stock or crypto, can help you avoid paying capital gains taxes and allow you to claim the full fair market value as a charitable deduction.
4. Regular charitable donations, combined with other common deductions like mortgage interest and real estate taxes, can help you exceed the standard deduction and itemize your taxes for additional savings.
Navigating these tax laws can be complex, but Daffy is here to help. As a Donor-Advised Fund (DAF), Daffy provides resources and guides to help you understand the latest IRS updates and maximize your charitable contributions. By choosing Daffy, you can continue to make an impact on the causes you care about while also maximizing your tax benefits.
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.