Charitable Donations May No Longer Be Tax Deductible
OKLAHOMA CITY - Many Oklahomans wait until the end of the year to make donations to non-profits such as Goodwill.
“Usually this is our heaviest material donation volume of the year, because people are typically wanting to clear out space, and the tax effect of making a donation and filing it on their return,” said Mark Barth, President and CEO of Goodwill Industries of Central Oklahoma.
But this year, that is changing for many Oklahomans under the new tax law. Experts say as many as 95% of Americans will no longer itemize their tax returns. They’ll instead fall under the standard deduction.
Oklahoma Goodwill locations haven’t seen a decrease in donations yet. They say it may take a while for taxpayers to catch on.
“If we were to receive fewer donations, then the result is we have to scale back, and unfortunately, reduce the investment we make in programs and services for those who have challenge to employment,” said Barth.
Experts say many taxpayers will benefit.
“It’s a big winner to the taxpayer because there are many that were able to itemize in the past, but it might only be $17,000 or $18,000. And now, they can get the standard,” said CPA Joshua Jenson.
The law may have changed but making sure to grab a receipt hasn't. Anything is possible
“There could be the year that you have enough to itemize, because one of the big things that's also involved and is also new is the medical. If someone had medical in a year, they might find themselves able to itemize. So, you’d still want those receipts,” said Barth.
Each financial situation is different. It is important to consult with a professional before making any type of big financial decision.