The 2017 Tax Act doubled the standard deduction individuals automatically get when they file their taxes – a change that put more money in many taxpayers’ pockets but also reduced the tax advantages of charitable giving for many.
The new tax plan doubled the standard deduction from $6,350 to $12,000 for a single filer and from $12,000 to $24,000 for married couples. In response, the Tax Policy Center predicted that the number of households claiming an itemized deduction for their gifts to nonprofits would decrease from about 37 million to 16 million.
Some local nonprofit officials said they haven’t felt the crunch yet, though. The United Way of Greater Chattanooga, The Community Foundation, Metropolitan Ministries and the Hamilton County Baptist Association all said that giving throughout last year was better than expected and even above previous years.
So far, it would seem that Chattanoogans give to make a difference and not for the tax break.
Dennis Culbreth, director of missions for the local Baptist association, said there was record giving at some of the local churches and others had giving comparable to previous years. Culbreth said he and the association’s church leaders are optimistic that the tax plan will have a positive impact on the economy and save people money overall.