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Respond to this: Income Tax: The lottery winnings will still be taxed in 2023, but the donation won't impact his 2024 income taxes. Itemized Deduction:William
Respond to this: Income Tax: The lottery winnings will still be taxed in 2023, but the donation won't impact his 2024 income taxes. Itemized Deduction:William can still deduct the $ 100 , 000 donation on his 2024 tax return if he itemizes. Standard Deduction: The standard deduction is adjusted annually, potentially changing the decision on itemizing in 2024. Charitable Deduction Limit: The 60% AGI limit still applies in 2024. However, if William has lower income in 2024, the limit might be less restrictive than in 2023. The best year for William to donate depends on several factors, including: His total income and planned deductions in both years. His expected tax bracket in each year. Whether he expects his income to be higher or lower in 2024. His state's tax laws regarding lottery winnings. William should consult a tax professional to analyze his specific situation and determine the optimal timing for his charitable donation.
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