As you’re giving thanks, this is the time of year when people start thinking about those in need. As you plan those charitable gifts, consider a few thoughts. Under the new Tax Act, you will now have a larger standard deduction. This means that your charitable gifts while noble may no longer give you any tax benefit. If you’re single you have a standard deduction of $12,000 and if you also are over 65 its a whopping $13,600. For married filing jointly, its $24,000 and for those over 65 its $1,300 per geezer.

So you have to consider your package of deductions. If you have a mortgage the interest is still for the most part deductible (unless debt exceeds $750,000 then its pro-rated). Taxes are capped at $10,000. Medical 7.5% of adjusted gross income. You get no miscellaneous itemized deductions (that includes home office if you are a salaried employee). So, add up your deductions so far and you’ll see if the charitable deductions help get you over the thresholds above. If they don’t help you there are some ways to save. For example, you can take money and have it paid directly out of your IRA to charity (Qualified Charitable Distribution – QCD). Doing so, gets money to the charity without having to pay taxes on it first. And if your over 70 1/2, these payments qualify toward your Required Minimum Distributions. You can give appreciated assets and avoid the capital gains on those assets while getting a charitable deduction.

Additionally charitable gifts no longer are much benefit relating to Estate Taxes as the Federal Government limit is $10 Million per individual or $20 Million per couple. They may do you some good if you live in a state which retained its estate or inheritance tax. However the rates on those taxes are less than 10%, so the other 90% that you gave away, does not go to your family.

The key is to still give, just run the numbers to project the best way to give. Have a blessed Thanksgiving.