In 2021 the standard deduction1 is $12,550 for single filers and married filing separately, $25,100 for joint filers and $18,800 for head of household. Due to the high standard deduction, it is becoming more and more popular to go this route versus itemizing. Charitable gifting has been a long-time strategy by many to give back to their communities as well as helping with their overall tax efficiency. Below are several of the more popular gifting strategies that we want you to be aware of if you are considering charitable giving.
A Qualified Charitable Contribution is an option for someone over the age of seventy-two, who receives Required Minimum Distributions from their IRA. The limit for individuals is $100,000 and $200,000 for married couples, with the additional option to donate more from your IRA accounts through the Required Minimum Distribution. An advisor at Greystone can provide you with an option to send funds directly from that IRA to your desired charity. Exercising this option will help to reduce your Adjusted Gross Income (AGI).