The Universal Charitable Deduction is a new, permanent tax rule that allows donors who do not itemize (who take the standard deduction) to receive a tax benefit for their cash gifts. It includes:

• a $1,000 deduction for single filers.
• a $2,000 deduction for joint filers.

This deduction is above the line, which means it lowers your taxable income before the standard deduction is applied.

Example:

• You file as an individual.
• You make $1,000 in charitable donations this year.
• You take the standard deduction.
• You’re in the 22 percent tax bracket.
• Your tax savings: $1,000 donation x 22 percent = $220 saved on your taxes.

Note that donor-advised fund contributions do not qualify for this new deduction.

To learn more, talk to your financial planners and local WELS Christian giving counselor.