Make a Difference for Generations to Come

Make a Difference for Generations to Come

Ways You Can Give to Make a Difference

Planned Giving

About Bequests

You may be looking for a way to make a significant gift to help further our mission. A bequest is a gift made through your will or trust. It is one of the most popular and flexible ways that you can support our cause.

Learn More

IRA Charitable Rollover

An IRA rollover allows people age 70 1/2 and older to reduce their taxable income by making a gift directly from their IRA.

Learn More

Beneficiary Designations

A beneficiary designation gift is a simple and affordable way to make a gift to support our cause. You can designate our organization as a beneficiary of a retirement, investment or bank account or your life insurance policy.

Learn More

Charitable Gift Annuities

A charitable gift annuity is a great way you can make a gift to our organization and benefit. You transfer your cash or property to our organization and we promise to make fixed payments to you for life at a rate based on your age.

Learn More

Donor Stories

Learn how others have made an impact through their acts of giving to our organization and others. Explore the many benefits of charitable gift planning.

Learn More

Gift Options

SeniorServ Volunteer

Find out What to Give and learn about the best assets to make a planned gift. Learn about gifts of cash, securities and property. Learn How to Give and discover gift options that provide tax and income benefits. Discover the best planned gift to meet your goals.

Learn More
Text Resize
Subsribe to RSS Feed

Tuesday August 16, 2022

Washington News

Washington Hotline

Inflation Protection for Tax Benefits

With inflation running at the highest levels in several decades, Members of Congress are concerned about adjusting taxpayer credits and deductions to account for the soaring inflation. Senator Chuck Grassley (R–IA) has been a leader in proposing inflation adjustments that will help Americans.

He published a press release on July 21, 2022 and said that he seeks "to help Americans struggling to afford everyday expenses keep more of their hard–earned money." Grassley notes an Iowa State University study shows most individuals are paying $669 more per month for living expenses. This increase occurred during the past two years.

Grassley proposes to index several tax benefits for inflation. He stated, "The relentless 40–year high inflation we are seeing today has made it increasingly difficult for Americans to afford their trips to the gas station and grocery store. Indexing useful tax credits to inflation—like the Child Tax Credit and the Lifetime Learning Credit—will help parents and students keep up with rising costs. I will continue to work on commonsense policies that will help Americans weather this soaring inflation."

The proposed bill would provide indexing for the Child Tax Credit, the American Opportunity Tax Credit, the Lifetime Learning Credit, the Student Loan Interest Deduction and the charitable mileage eduction.
  1. Child Tax Credit — This is a $2,000 credit for families with dependent children under 17. This credit and a $500 credit for other dependents would be indexed.
  2. Child and Dependent Care Credit — The credit for child–care expenses is currently $2,100 for two or more children and $1,050 for one child. It would be also indexed.
  3. American Opportunity Tax Credit — To enable individuals to attend college, there is a $2,500 credit for tuition expenses. This would be indexed.
  4. Lifetime Learning Credit — Another potential benefit for payment of eligible tuition is the Lifetime Learning Credit of $2,000.
  5. Students Loan Interest Deduction — Many Americans complete college, or university with substantial student loans. Up to $2,500 in interest on student loans may be deducted.
  6. Charitable Mileage Deduction — Individuals who volunteer for charitable organizations will frequently incur costs to drive to various organizational events. The current $0.14 per mile deduction is far lower than the rate for medical or business driving. The bill proposes to allow the IRS to adjust the mileage rate based on current costs.
Editor's Note: All of these tax benefits, except the charitable mileage deduction, have phaseouts for taxpayers with higher incomes. These phaseout amounts would be indexed. Individuals who volunteer for charitable organizations hope that the charitable mileage deduction will finally be increased. With the dramatic increase in the cost of gasoline this year, the $0.14 per mile rate is outdated. Members of Congress have proposed increasing the charitable mileage rate to the business rate of 62.5 cents per mile.

Published July 22, 2022
Subsribe to RSS Feed

Previous Articles

Federal Trade Commission Webinar on Scams and Identity Theft

Should The Charitable Mileage Rate Be Increased?

IRS Tax Collection Voice Bots Successful

IRS Offers New Voice "Bot" Service

Should the IRS File Your Income Tax Return?