SOMA Living December 2025

FINANCIAL FOCUS GENEROSITY MEETS STRATEGY: TAX-SAVVY CHARITABLE GIVING Giving to charity feels good—and with smart planning, it can also be financially beneficial. Understanding how charitable tax deductions work helps you support causes you care about while maximizing your impact. To claim a charitable deduction, you must itemize your tax return. In 2025, the standard deduction is $31,500 for married couples filing jointly and $15,750 for single filers. You’ll only benefit from itemizing if your total deductions, including charitable gifts, exceed these thresholds. If you donate regularly but don’t typically surpass the standard deduction, consider “stacking” your donations. For example, instead of giving $5,000 annually, you might donate $15,750 in one year to qualify for itemization, then take the standard deduction in subsequent years. Ensure your donation qualifies. Contributions must go to IRS-recognized charities. Donations to individuals, even those in need, aren’t deductible. Also, if you receive something in return—like concert tickets—only the portion exceeding the value of the benefit is deductible. The IRS limits deductions based on your adjusted gross income (AGI): up to 60% for cash donations and 30% for appreciated assets. Excess amounts can be carried forward for up to five years. Strategic giving matters. Donating appreciated stocks can offer additional tax advantages by avoiding capital gains taxes. Keep proper documentation, especially for donations over $250 or non-cash gifts exceeding $5,000. Charitable giving starts with the heart—but thoughtful planning ensures your generosity goes further. Consult a tax professional to align your giving strategy with your financial goals.

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Gary T. Jones 973.821.4900 • g.jones@EdwardJones.com

With over 25 years of experience, I work with individuals and businesses to help you achieve your financial goals. As a longtime resident of SOMA, I am proud to serve the local community. To learn more about the content of this article or schedule an appointment to talk about your goals, please contact me in my Maplewood office.

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DECEMBER 2025 | SOMA LIVING 21

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