Note that this strategy makes sense only if the donor will
itemize deductions; the larger the donation, the greater the itemized deduction, and the more tax benefit from the charitable contribution.
Under the TCJA, married couples may find it difficult to
itemize deductions.
So make certain to claim all the deductions and credits you can, whether you
itemize or not.
In light of these cases, one should consider advising clients to file a tax return for all tax years even if there is no filing requirement because, once an election is made to either
itemize deductions or claim the standard deduction, a taxpayer may change the election on an amended return as prescribed under Regs.
1693, the Disabled Workers Empowerment Act, which would ease the costs of working with a disability by allowing a more comprehensive tax deduction for disability-related work expenses, regardless of whether the taxpayer
itemizes expenses.
While the two-issue rule requires counsel to sufficiently
itemize the verdict, the solution is not to
itemize every issue and sub-issue.
(If one spouse
itemizes, the other must also
itemize).
Thanks to the Tax Cuts and Jobs Act and the higher standard deduction that came with it, experts have estimated that only about 5% of Americans will be able to
itemize deductions going forward.
Regardless of whether you choose to
itemize, here are a few tax-wise strategies to consider:
Under the new, as well as prior, tax law, taxpayers can either take a standard deduction or
itemize deductions on Schedule A of IRS Form 1040.
The net result is taxpayers are less likely to
itemize.
For 1990, taxpayers can elect to
itemize deductions for certain medical costs, interest, taxes, charitable contributions, casualty and theft losses, moving expenses and miscellaneous expenses if their total exceeds the taxpayer's standard deduction.
