It’s that time of year when charitable giving is at its highest. However, despite the best of intentions, not all giving is created equal. In addition to lending a helping hand, there are certain ways to give that can reduce your taxes through cuts and credits, while making contributions to organizations that help the community.
When you give money to certain programs or organizations, you can claim a deduction to reduce the amount of taxes you owe. With some programs you can even get a tax credit for the donation amount, thereby paying part of the now reduced taxes you owe, all with the same single contribution. Less money in taxes is more money in your pocket. Below are some examples of programs we found during the 2018 year. New programs are being implemented each year, but many have limited life spans and will only be available for one year. Our list isn’t exhaustive, but it will help to give you an idea of programs to look for in the future.
- The Rural Hospital Tax Credit Program – You contribute to a Rural Hospital and receive a federal charitable donation that is partially or fully deductible. The hospitals are listed online. You also receive a Georgia tax credit for 100% of the deduction that is approved through the program. This tax credit currently applies to 58 hospitals throughout Georgia and the contribution period has been extended until 2021 or until the maximum contribution to the program state-wide is $60 million. How does this save you money? You are getting a federal and state deduction for the same donation. If you have taxes withheld and with the contribution you end up paying more tax than you should have, the government will be writing you a check, and you’ll be helping your community.
- Private School Scholarship Programs – The tax credit for private school scholarship programs (often abbreviated to GOAL) allows a married couple to claim up to $2,500 in state tax credits. Corporate donors can claim a credit up to 75% of their income tax liability. The Statewide limit for contributions is set at $58 million a year, which often is reached quickly. Currently 135 schools are eligible to receive contributions and for the taxpayer to receive credit.
- Conservation Easements – A conservation easement has the benefit of helping with tax credits, but also preserving greenspace for wildlife. To qualify, you must buy a piece of land, donate the land (all or part) to a conservation easement (or you can donate land you already own). You may receive up to 25% of the fair market value of the property in tax credit.
These are just a few of the ways you can fit charitable giving into your financial life and estate plan. At Grissom Law, LLC, we know the importance of charitable giving. Many of our clients take great pleasure in supporting their favorite charities and wish to continue to do so after their death. If you need help setting up charitable giving and philanthropic endeavors, call us today. We have the tools, skills, knowledge, and experience to help you establish a legacy that your chosen organizations will appreciate, and you can be proud of. We’ll help you outline strategies to support the causes or organizations you choose while maximizing available tax-savings.
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This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.