Financially Free Era by SLP Wealth OBBBA: Gifting & Tax Perks
Aug 22, 2025
Explore how recent tax law changes can enhance your charitable giving and education planning. Discover the importance of properly documenting Goodwill donations for tax deductions. Learn about smart strategies like 'super funding' 529 plans and 'bunching' gifts to maximize benefits. Understand the implications of high earners in the new deduction landscape. This insightful discussion equips you with the tools to give generously while keeping more money in your pocket—perfect for year-end financial planning!
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Universal Deduction And New AGI Floor
- The BBB created a universal above-the-line deduction for cash donations even if you don't itemize, up to $1,000 single or $2,000 MFJ.
- Itemized charitable deductions now face a 0.5% of AGI floor, so small gifts may not produce an itemized benefit.
Plan Gifts Around Your Expected AGI
- Don't give just for a tax break; give because you want to, but plan if deductions matter for you.
- Re-check your AGI before assuming a deduction because AGI can change and affect the floor.
Document Non-Cash Donations Precisely
- Keep detailed lists of donated items and values; the vague Goodwill drop-off slip is not enough for deductions.
- For non-cash donations $250+, get organization receipts stating no goods/services were exchanged; >$5,000 needs an appraisal.