For years, approximately 30% of taxpayers (mainly those with higher incomes) itemized their deductions; starting with 2018 tax returns, it is estimated that only 10% will
itemize. Taxpayers might not realize that taking the standard deduction means they will not
itemize and therefore will not receive any tax benefit from their charitable contributions.
Because of these differences, you may find that your itemized deductions between federal and New York are considerably different, or you may even claim the standard deduction for federal but still
itemize for New York.
Conversely, many single taxpayers are finding that it still pays to
itemize.
Taxpayers who are impacted by the SALT limitthose taxpayers who
itemize deductions and who paid state and local taxes in excess of the SALT limitmay not be required to include the entire state or local tax refund in income in the following year.
Asked why they did not
itemize the lump sum funds before Congress ratified the expenditure plan, Senior Deputy Majority Leader Rodante Marcoleta earlier said: 'Marami nga kami.'
Andaya defended the House leadership's move to
itemize lump-sum entries in the bicameral-approved version of the 2019 GAA bill, even though the changes were introduced after both chambers in plenary had ratified the bicameral report.
Crespo is sponsoring House Bill 3095, which requires retail receipts to
itemize the sales tax on a customer's receipt to detail the taxes imposed by each unit of government.
One of the single most important decisions you'll make when you file taxes is whether you should
itemize your deductions or claim the standard deduction.
The Trump administration tax cuts keep the deductions in place but raise the threshold enough that many taxpayers who have taken advantage of the deductions in the past might not be able to do so starting in 2018."You have a tax cut that's impacting the itemized deduction, so the nonprofit space is losing money ..." Sally Glick, chief growth strategist, Sobel and Co."The charitable deduction is only available to taxpayers who
itemize and because the standard deduction has been raised, fewer taxpayers will be able to take advantage of itemizing and fewer taxpayers will be able to take charitable deductions," said Linda Czipo, president and CEO of the Center for Nonprofits, which helps different organizations get their philanthropy efforts off the ground.
Around this time of year, many taxpayers begin the annual ritual of pondering The Big Question: Do I take the standard deduction or spend time hunting for receipts and filling out extra forms to
itemize? The decision largely boils down to whether itemizing will reduce your taxable income more than the flat, no-questions-asked standard deduction will, thus saving you money.
It remains to be seen exactly how charitable giving will be impacted by tax reform legislation but the latest estimate has the number of taxpayers who
itemize dropping from 37 million to 16 million.
Since taxpayers will use the greater of their standard deduction or their itemized deductions, fewer taxpayers will
itemize. This could have a negative impact on charitable giving since charitable contributions are only deductible to taxpayers who
itemize.
