The end of the year is fast approaching, and the Greater Washington Community Foundation offers a reminder that time is running out to make charitable giving decisions that can impact your 2023 taxes.
The 2023 standard deduction is $13,850 for single taxpayers and $27,700 for married taxpayers who file jointly. The standard deductions are 7% higher than in 2022, which allows some relief for taxpayers but makes it harder to exceed the standard levels. If you are at or under those amounts, you and your advisors may determine that your high income means you could benefit from increasing your deductions.
Itemizing and bunching. This may be a good strategy for those at or under the standard deductions and with high incomes. Itemizing deductions and "front-loading" a sizeable charitable donation into the current year, knowing that you plan to make these donations in future years, can help reduce taxes.
Gifting stock instead of cash. Donating long-term appreciated stock is an excellent way to give to a favorite charity and avoid capital gains taxes. Stock transfers are eligible for the tax deduction in the year of the transfer (at fair market value if you’ve held the stock for more than one year) and could potentially reduce income tax burdens triggered upon a future business sale. The Primary Care Coalition (PCC) accepts donations online and by mail, as well as stock donations. The PCC is a 501(c)3 nonprofit organization, and donations to the organization are tax-deductible to the fullest extent of the law.
The 2023 standard deduction is $13,850 for single taxpayers and $27,700 for married taxpayers who file jointly. The standard deductions are 7% higher than in 2022, which allows some relief for taxpayers but makes it harder to exceed the standard levels. If you are at or under those amounts, you and your advisors may determine that your high income means you could benefit from increasing your deductions.
Itemizing and bunching. This may be a good strategy for those at or under the standard deductions and with high incomes. Itemizing deductions and "front-loading" a sizeable charitable donation into the current year, knowing that you plan to make these donations in future years, can help reduce taxes.
Gifting stock instead of cash. Donating long-term appreciated stock is an excellent way to give to a favorite charity and avoid capital gains taxes. Stock transfers are eligible for the tax deduction in the year of the transfer (at fair market value if you’ve held the stock for more than one year) and could potentially reduce income tax burdens triggered upon a future business sale. The Primary Care Coalition (PCC) accepts donations online and by mail, as well as stock donations. The PCC is a 501(c)3 nonprofit organization, and donations to the organization are tax-deductible to the fullest extent of the law.
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