Skip to main content

Are you a legal professional? Visit our professional site

Please enter a legal issue and/or a location
Begin typing to search, use arrow keys to navigate, use enter to select

Tax Bites: Is the Season of Giving Over?

By William Vogeler, Esq. on December 20, 2017 5:58 AM

Taxpayers are rushing to claim deductions before the new tax bill goes into effect, and few know what their final bill will be.

According to reports, the tax legislation will be approved before Christmas and bring an end to certain deductions in the New Year. It will cap the amount of state, local, and property taxes individuals can deduct from their federal tax bills at $10,000.

But the new law may also cut into charitable deductions at this time of the year, according to one law professor. That's right, people are getting Scrooged.

Death of Deductions

Reuters reports that financial advisers and accountants are working overtime as many Americans scramble to pay the rest of their 2017 taxes before January 1. That's because the government is taking away various tax deductions next year.

Taxpayers have until January 15 to pay their taxes, but many are paying sooner. Tom Holly of the accounting firm PwC said he received dozens of calls over the weekend from concerned clients.

"It's going to be a very busy holiday season for advisers," Holly said.

Gerry W. Beyer, a professor at Texas Tech University School of Law, says the tax bill may also hurt end-of-the-year giving.

Charitable Not-Giving

He said many taxpayers wait until late December to make donations to charity. It is a cut-off for taking a deduction in the tax year.

"With standard deductions likely going up, these last-minute donors have less incentive to itemize their deductions, which may lead to fewer gifts to charities," he wrote for the Wills, Trusts and Estates Prof Blog.

Beyer said a "possible abrogation of the estate tax" may also affect charitable donations because high-net-worth taxpayers will be less concerned about the tax consequences of passing their wealth to beneficiaries, he wrote.

Related Resources:

You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help

Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.

Or contact an attorney near you:
Copied to clipboard

Find a Lawyer

More Options