Well, new results are in from 2018 IRS tax returns and charitable deductions (itemized on tax returns) dropped $54B in 2018 following the 2017 Tax Cuts and Jobs Act (TCJA).
The TCJA doubled the standard deduction — the amount taxpayers are allowed to subtract from their taxable income to reduce their tax bill. Taxpayers can still itemize their deductions, but there’s less incentive to do that now that the standard deductions are higher. Many worried that would lead to fewer taxpayers itemizing, and in turn fewer people donating to charity as a way to get a deduction.
Take a look at the full Market Watch summary here: https://www.marketwatch.com/story/americans-slashed-their-charitable-deductions-by-54-billion-after-trumps-tax-overhaul-2019-07-09.
How are you preparing for a continuation of this trend?