New laws went into effect for the 2018 tax year that affect the income tax filings of people here in Massachusetts and others across the country. If not fully understood, some of them could end up in trouble with the IRS. This even extends to those with giving hearts since certain charitable contributions may not be tax deductible depending on the circumstances.
When making donations, many here in Massachusetts and elsewhere count on the tax deduction they provide. Those deductions will more than likely not be possible under the 2017 Tax Cuts and Jobs Act for many people. That is, unless the person donating gives amounts that exceed the new standard deduction of $12,000 for a person filling as an individual or $24,000 for married couples filing jointly.
Naturally, organizations that rely on donations may be worried. Even so, some speculate that is not necessary since people continue to donate despite the tax changes since they do it out of a generosity of spirit, not simply for the potential tax deduction. Of course, having the deduction does not hurt. This is just one change to the tax code that could trip up filers come April 2019.
Without a good understanding how the new tax laws affect each individual, well-intentioned filers could find themselves in hot water with the IRS. No one wants to end up in this position, so it might be a good idea to gain as complete an understanding as possible of the changes that could affect a filer. The tax laws have always been somewhat of a mystery, but since there have not been any significant changes made in decades, now would be a good time to make sure that everything is in order.