Irs Form 13844 Charities 2025

Music, here at Northern Trust, we have been receiving a lot of questions around charitable giving under the new tax law. To give you some answers, we're here with Susanne Shire, chief wealth planning and tax strategist. So before we jump into the specifics around giving, could you step back and help us understand what's changed around deductions? The change with respect to deductions is the increase in the standard deduction. Individuals now have a $12,000 standard deduction, and married couples filing jointly have a $24,000 standard deduction. So, what is the significance of that increase? It's expected that eighty-nine percent of taxpayers will use the standard deduction instead of itemizing. For those who will no longer itemize under the new tax law, should they be less inclined to give? I certainly hope that giving isn't diminished because of a change in the tax law, and remember, tax rates overall went down. That means that there's more discretionary income, and people give out of their discretionary income. So, are there any tips around charitable giving under the new tax law? There are many. One would be giving appreciated securities to qualifying charities. If we give an appreciated security to a qualifying charity, the individual gets a deduction for the full fair market value. That's better than selling the security, paying the capital gain tax, and then giving the cash. Another strategy that's very effective for individuals who are over 70 and a half and have an IRA is the opportunity to make a direct contribution from an IRA up to $100,000 to a qualifying charity. Why is that better than just taking a charitable deduction? Because that $100,000 is excluded from income. If we exclude income, we might find that we're not subject to the 3.8 percent net investment income tax because we haven't reached a threshold....