The share of middle-income households claiming the charitable deduction will fall by two-thirds, from about 17 percent to just 5.5 percent. The Tax Policy CenterEven as fewer taxpayers take itemized deductions for their charitable giving, the TCJA’s individual income tax changes will reduce the average marginal tax benefit of charitable giving from 20.7 percent to 15.2 percent. While the marginal tax benefit of charitable giving will decline significantly for low- and moderate-income itemizers, it will hardly change for the highest-income taxpayers. For example, it retains a piece of the state and local tax deduction, which will cause fewer taxpayers to shift to the standard deduction. But, like the House version, the new law is likely to reduce charitable giving by somewhere in the neighborhood of 5 percent.

Source: Forbes January 11, 2018 20:52 UTC