Making a charitable donation is not only a chance to make a difference: it's also an excellent way to reduce your tax burden for the year. The tax benefit is considered a compelling reason for making charitable deductions: more than two-thirds of high-net-worth donors said they would decrease their giving if they did not receive a corresponding tax deduction.
The new tax reform bill has been passed and it will affect most of the population when filing your 2018 taxes. Reduced tax rates, higher standard deductions, and higher child tax credits for families are just a few of the perks that individual taxpayers will see next year.
However to pay for these tax breaks, lawmakers took away many deductions that millions of taxpayers had used every year to reduce their tax bills. The nine deductions discussed are just some of the popular provisions that will disappear, and taxpayers will have to look closely at their own personal situations to see whether other, less common deductions are also going away.
The tax changes for 2017 are small and there are only 5 changes that will affect you returns.
1. Standard deductions will increase.
Your standard deduction will go up a smidge in 2017. Individual filers and heads of household will receive a standard deduction of $6,350 and $9,350, respectively, in 2017, up $50 from 2016. Couples filing jointly get a $100 year-over-year lift to $12,700 in 2017. Although this change isn't liable to put a lot of extra money in your pocket, anything that can reduce your tax liability without having to lift a finger is good for you.