by David Schowalter, Stewardship Team

Welcome back from summer, everyone, and welcome to the Stewardship Team’s frank and open nuggets about pledging and financial support of UUCW!

In Massachusetts, taxpayers typically have two options when filing their state taxes: taking the standard deduction or itemizing deductions. Starting in 2023, however, residents have been able to itemize their charitable contributions, including to UUCW, even if they opt for the standard deduction on their state return.

Here’s how it works:

• Standard Deduction: When choosing the standard deduction, taxpayers automatically reduce their taxable income by a fixed amount. In Massachusetts, this is often the simpler route for many filers.
• Itemizing Charitable Contributions: As of recent updates to Massachusetts tax law, residents can now deduct donations to qualified charitable organizations, such as UUCW, separately, without giving up the standard deduction. This is a key change that allows more flexibility and tax savings for those who contribute to charities but may not have enough other deductions to itemize fully.

To itemize charitable contributions, taxpayers need to keep records of their donations, such as receipts or bank statements, and report them on their Massachusetts state tax return. The contributions must be made to IRS-approved charitable organizations.

Many thanks to Janet Cutman who pointed this out to the Stewardship team!

The Stewardship Team:

Moira Rouse
Dave Schowalter