How Your Ministry Support Can Help Save You Taxes
By Cathy Ritchie, Enrolled Agent
As we approach the end of the year, there are some actions you can take that may help lower your taxes while continuing to support the ministries of LCR. With new tax law changes set to take effect January 1, taking action before the end of the year might be beneficial depending on your situation.
New Changes*
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Beginning in 2026, charitable contributions may be limited for people who itemize — contributions will have to be reduced by 0.5% of Adjusted Gross Income (AGI).
Example: with $100,000 AGI, the first $500 of contributions will not be deductible.
Additionally, overall itemized deductions may be limited depending on your AGI. -
For people who don’t itemize deductions (take the standard deduction), beginning in 2026 there’s good news — you may be able to deduct up to $1,000 ($2,000 for married couples filing jointly) of monetary contributions.
“Oldies but Still Goodies”
There are a couple of strategies for making charitable contributions that can help you on your taxes whether or not you itemize:
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Donation of Appreciated Stock — If you donate stock that has increased in value, you can avoid paying capital gains tax and may be able to deduct the fair market value of the stock at the time of your donation, saving even more money.*
LCR appreciates your completion of this type of donation by December 15 to ensure the contribution is completed by year end. Contact the office for donation information. -
Qualified Charitable Distributions (QCDs) — If you are at least 70½ years old, you may be able to make a Qualified Charitable Distribution of up to $108,000 from your IRA.
The distribution will be excluded from your income, saving you money on taxes whether or not you itemize, and lowering your AGI.*
*As with anything tax-related, before you take action it’s recommended that you discuss your personal situation with your tax advisor.
