This could happen to taxpayers who choose to take the standard deduction rather than itemizing
. The TCJA raised the standard deduction and restricted itemized deductions, especially the one for state and local taxes (SALT).
Single taxpayers are finding it easier to find value in itemizing
compared with couples filing jointly.
The congressmen retorted that they were simply itemizing
the lump sums in the bill, as lump sums had been allegedly used to hide the "pork barrel" of the congressmen.
'There is a big difference between itemizing
, which is to present as a list of individual items, and realigning, which is to change or restore to a different state,' he added.
But the House position is clear: we will not agree to the Senate's stand that we return to the old mode of lump-sum budgeting," Andaya said, adding the House "remains steadfast in its mission of itemizing
all lump-sum funds" in the proposed budget.
AMID issues on the lump- sum funds in the stalled P3.757-trillion national budget for 2019, the chairman of the House Committee on Appropriations on Sunday reiterated there is nothing illegal in itemizing
the national budget even after its ratification by both chambers of Congress.
makes sense only if the value of deductions that require you to itemize exceeds the value of the standard deduction.
Giving by non-itemizing individuals grew 3.3 percent while giving by itemizing
individuals grew 5.6 percent.
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.
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.
As a simple example, consider a married couple who each year has $15,000 of charitable deductions and $8,000 of other itemized deductions and who would probably choose the $24,000 (inflation adjusted) basic standard deduction each year rather than itemizing
. If they could simply bunch two years of charity into one year, they could claim $38,000 of itemized deductions for that year and still take the standard deduction in the other year, increasing their total deductions by about $14,000.