Significant provisions of the Tax Cuts and Jobs Act relevant to charitable donors.

  • These charts review the tax proposals most relevant to charitable donors in the Tax Cuts and Jobs Act (the Act) as passed by the U.S. Congress December 20, 2017 and signed by President Trump. 
  • Although the Act eliminated or dramatically reduced most itemized deductions, it retained the charitable deduction. The deduction for cash contributions to public charities was even enhanced, permitting cash contributions up to 60% of adjusted gross income, rather than 50% under prior law.
  • However, for many donors the tax advantages of charitable giving will be impacted by rate reductions and other changes. Most of the provisions of the Act are effective for tax years beginning after 2017, with many of the individual income tax provisions expiring after 2025.

The most significant changes in tax law—since the 1986 tax reform—were enacted in December 2017. The following charts detail the provisions most relevant to high income and high-net-worth taxpayers.

Please read important disclosures at the end of the article.

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