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Thank you for your interest in learning more about Tax-Wise Giving Strategies!
Please follow the links below to read more about the Illinois Tax Credit Scholarship, Qualified Charitable Distribution Giving, and Donor Advised Fund Giving.
1. The Tax Credit Scholarship (TCS) / Invest in Kids is Sunsetting
A few weeks ago, a flyer was distributed by the Archdiocese asking you to contact your Illinois State Representatives in order to petition them to reinstate the “Invest in Kids” tax credit program. The Illinois General Assembly has slated this program to end on December 31, 2023 and removing it from future budgets.
Hence, this year is the last opportunity for Illinois taxpayers to donate toward Empower Illinois for the benefit of St. Theresa School students (currently we have 26 on the waitlist). These scholarships provide critical financial aid AND, you, the taxpayer will receive a 75% credit against your state taxes. As an example, if you donate $1,000 to Empower Illinois, you receive a $750 credit on your 2023 Illinois State Income tax return.
First time donors should ideally start the process before December 15, 2023 by requesting a “Letter ID” from the Illinois Department of Revenue (IDOR). This letter takes about 10 days to receive via US Mail. Once the Letter ID is received , you are able to make your donation (and thus receive the credit). All this must be done by December 31, 2023. If you would like more information on how to set up and donate toward the Tax Credit Scholarship, detailed instructions can be found by clicking on the link above. Or feel free to contact Tom Galvan, St Theresa Business Manager at 847-358-7760 ext. 105 or tomg@sttheresachurch.org.
Please Note: Last year there was a 1 to 1 match of your donation to St. Theresa by the Archdiocese of Chicago. Unfortunately, this matching incentive has not been formalized as of the date of this bulletin article.
2. Qualified Charitable Distribution (QCD) Giving
We are in the final months of the tax year and this is the perfect time to consider charitable tax planning. For those parishioners who are over 70 1/2 years old and need to take a Required Minimum Distribution (RMD) for tax year 2023, a Qualified Charitable Distribution (QCD) is a worthwhile strategy. Your IRA administrator could walk you through the process and by doing so, will help avoid federal and state income taxes when completed.
Please read additional information by clicking on the link above or contact Tom Galvan at 847-358-7760 or tomg@sttheresachurch.org.
3. Donor Advised Fund (DAF) Giving
A Worthy Year-end Tax Strategy – Donor Advised Funds (DAF)
The subject of a Donor Advised Fund came up recently around the office. Since the IRS changed tax laws to increase the standard deduction (for 2023: $13,850 for single and $27,700 for married filing jointly taxpayers), the itemization of charitable deductions has become more challenging. A Donor Advised Fund (DAF) is a tax strategy that allows you to bundle an irrevocable charitable commitment for a current year deduction; and allows you to donate over a period of time in the future. Consider creating a DAF with a sponsoring organization (broker) in the next few weeks to increase your itemized deductions for 2023.
If you would like more information on how to create a Donor Advised Fund, very detailed instructions can be found using the QR Code to the left. Or feel free to contact Tom Galvan, St Theresa Business Manager at 847-358-7760 ext. 105 or tomg@sttheresachurch.org.