News / Article

Donate to charitable funds and nab a tax break in these states — for now

Source: - Jun 8, 2018

As the Internal Revenue Service takes aim at blue states' new tax workarounds, questions remain on whether the agency might take a closer look at red states' tax credit programs.

The Tax Cuts and Jobs Act, which went into effect this year, capped at $10,000 the state and local tax deduction filers can claim on their federal income-tax return.

New York, New Jersey and Connecticut recently have passed laws to create a workaround: They will permit municipalities to establish charitable funds to pay for local services and offer property tax credits to incentivize homeowners to make contributions.


Category: General Business