Charitable contributions under the new tax law

[bdcp]

CNN had a nifty calculator that indicates if you are middle class by county. In mine, middle class goes up to $170,000. Fairfax County, VA is coming up as $221,316. Orange County, FL (where Orlando is) comes in at $93,350. As you can see, middle class income varies quite a bit depending on where you live. Keep in mind that the median incomes in the census link aren't the same as "middle class". The CNN calculator also doesn't show what is upper middle class for the area and that's why I used $300K in my suggestion. Here's the link to the CNN calculator. http://money.cnn.com/interactive/economy/middle-class-calculator/index.html

According to that calculator DH and I are above middle class in our county (Loudoun county, VA). Middle class goes up to $236K in Loudoun. That calculator has a huge range for what it shows as middle class in our county which makes it a questionable tool. It starts middle class somewhere around 76K which means you couldn't afford to buy anything more than a condo if that comfortably. If you knew our exact income you'd think we're rich. We're not rich, but we are very comfortable. When we bought our home in 2003, even though it's large and above the median house cost where we are, we still didn't spend as much as we could have qualified for, which now, after 14 years means we have quite a bit of disposable income. DH's income went up significantly this past year but that only increased how much we gave to charity. We have never gone backwards in giving and won't.

 

[Dakota731]

We donated before we itemized and we will donate now. We give the same percentage of our income no matter what the tax breaks are.

 

[TwoMisfits]

According to that calculator DH and I are above middle class in our county (Loudoun county, VA). Middle class goes up to $236K in Loudoun. That calculator has a huge range for what it shows as middle class in our county which makes it a questionable tool. It starts middle class somewhere around 76K which means you couldn't afford to buy anything more than a condo if that comfortably. If you knew our exact income you'd think we're rich. We're not rich, but we are very comfortable. When we bought our home in 2003, even though it's large and above the median house cost where we are, we still didn't spend as much as we could have qualified for, which now, after 14 years means we have quite a bit of disposable income. DH's income went up significantly this past year but that only increased how much we gave to charity. We have never gone backwards in giving and won't.

Middle class is defined as the 25-75% level...at the lower middle class, you could probably just barely afford a condo...and the upper middle class, you can probably comfortably afford a detached regular home with a sweet yard...so, the $76K-$236K is probably dead on for your area's middle level...it's probably very wide spread since as a likely fed and defense land area, if you have single earner household, you'll usually fall to the lower end, but if you have a double earner one, you'll fall to the higher end...

Median income for Loudoun County (the exact 50% point for earners) is $125.9K for 2017...so the middle is much more packed to the lower end ($76K-$126K) than the higher end ($126K-$236K)...

This does mean that you fall in the upper class, or the top quarter to top quintile of earners for your area, depending if that middle calculator does 25-75 or 20-80 (which is sometimes also used)...

 

[bdcp]

Middle class is defined as the 25-75% level...at the lower middle class, you could probably just barely afford a condo...and the upper middle class, you can probably comfortably afford a detached regular home with a sweet yard...so, the $76K-$236K is probably dead on for your area's middle level...it's probably very wide spread since as a likely fed and defense land area, if you have single earner household, you'll usually fall to the lower end, but if you have a double earner one, you'll fall to the higher end...

Median income for Loudoun County (the exact 50% point for earners) is $125.9K for 2017...so the middle is much more packed to the lower end ($76K-$126K) than the higher end ($126K-$236K)...

This does mean that you fall in the upper class, or the top quarter to top quintile of earners for your area, depending if that middle calculator does 25-75 or 20-80 (which is sometimes also used)...

We fall above the 236K, but as I said, we're closer to the end of our careers than the beginning which does make a huge difference. The vast majority of people I know are well above 76K. I know individuals who make more than 236K. Our sons are in their early 30's and both are well above 76K. Sometimes people forget that majority of those at the lower end are just starting out and those at the upper end tend to be at their peak earning age. So, to just paint a broad brush about the number doesn't tell the whole story. Loudoun is a very high tech area. Most people we know are Fed contractors, engineers, software and IT people. 75% of all data flows through our county. We have data centers everywhere in the corridor we live in. Funny thing is, some of the wealthiest people are some of the stingiest with charitable giving and some of the poorest give a much higher percentage. If you believe in tithing, then tax deductions won't change how you feel about giving.

 

[tvguy]

We fall above the 236K, but as I said, we're closer to the end of our careers than the beginning which does make a huge difference. The vast majority of people I know are well above 76K. I know individuals who make more than 236K. Our sons are in their early 30's and both are well above 76K. Sometimes people forget that majority of those at the lower end are just starting out and those at the upper end tend to be at their peak earning age. So, to just paint a broad brush about the number doesn't tell the whole story. Loudoun is a very high tech area. Most people we know are Fed contractors, engineers, software and IT people. 75% of all data flows through our county. We have data centers everywhere in the corridor we live in. Funny thing is, some of the wealthiest people are some of the stingiest with charitable giving and some of the poorest give a much higher percentage. If you believe in tithing, then tax deductions won't change how you feel about giving.

Rich people stingy? Not sure if this is still true, but about 10 years ago I saw a study showing the most popular car with millionaires. The Ford Taurus. That maybe why they are millionaires!

 

[bdcp]

Rich people stingy? Not sure if this is still true, but about 10 years ago I saw a study showing the most popular car with millionaires. The Ford Taurus. That maybe why they are millionaires!

And then are those that make 100K per year and buy the most house they can and lease a BMW or Mercedes to look rich

All you have to do is watch some of the Real Housewives (esp NJ) and you'll see that left and right. There are sites that estimate net worth and DH and I are worth more than a few of them yet they try to live this lavish lifestyle. We drive Toyotas.

 

[RobDoc]

Due to continued political comments after being warned, this thread is now closed.