Feds Block Tax Breaks for Donating to these Charitable State Funds

Friday, June 14, 2019 in Press

Feds Block Tax Breaks for Donating to these Charitable State Funds

Key Points
  • The Tax Cuts and Jobs Act applied a $10,000 limit on taxpayers’ ability to write off their state and local taxes, which prompted some states to establish charitable funds.
  • The Treasury and IRS issued final rules on Tuesday to address these workarounds, largely putting a stop to blue states’ new charitable funds.
  • The regulation also dampens pre-existing charitable tax credit programs in 33 states.

The Internal Revenue Service and the Treasury Department have issued final rules blocking certain states’ attempts to work around the new $10,000 cap for state and local tax deductions.

Read more at CNBC.com


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