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I keep a spreadsheet that helps me estimate my current year taxes. As a result of tax changes from the Big Beautiful Bill and further tax changes resulting from the recent Ohio budget bill, I expect tax savings in 2025 in the neighborhood of $1800 on the Federal side and $300 on the State side. And, I expect further savings in 2026.
Political discussions are forbidden on the Humble Dollar site and this post is not political commentary. All of us probably have opinions about how reductions in Federal funding have been implemented this year. But no matter our opinions, the fact is they reflect real reductions to some organizations that are doing good work.
And, while I always appreciate lowering my cash outflows, I must admit that I did not need either the Federal or State tax cut. I was getting along fine at the prior rate of taxation.
I have concerns about the people impacted by these cuts. Reasonable people can disagree about the role of government in funding any number of programs. That doesn’t mean they are all worthless. And, maybe some should be funded to a greater degree by private individuals who believe in their work.
With my trusty spreadsheet calculations, I have mapped out a plan to donate my tax savings to organizations that saw cuts. First, I’m planning on upping donations I was already making to the local food bank, a voluntary health organization, and the local PBS station.
I also used Bing Co-Pilot to ask targeted questions about regional organizations that are likely to be hard hit by funding cuts. I learned of a charity, highly rated by Charity Navigator, that provides a wide range of services to underserved populations in my area. They expect to see a significant reduction in Federal monies. This organization was not previously on my radar but seems to deserve my consideration.
I have no illusions that an extra $2100 from me is going to save the world. But, if the government is going to step back, this is small way I can step forward.
A quick reminder: if you don’t have deep knowledge on a charity, or line of sight on their work, use extreme caution. Almost 100% of all metrics/data found anywhere is self reported by the charity itself. The more local the better.
Of the many websites that I am a member, this one is by far the best. Not only are the articles themselves helpful and informative, but the quality of the people who respond is beyond reproach, free of politics.
It is indeed an honor to be considered a member of this high quality group of like minded investors AND human beings.
May God bless every one of you and your families. Keep up the good work.
I deliver for Meals On Wheels. Every Thursday I load up my car trunk and visit the same 10 or so senior citizens with a hot meal and conversation (if desired). Two of my clients are so poor that they need the food on a daily basis, and the others are physically unable to cook for themselves and would not have a healthy, balanced diet without MOW. The elimination of federal funding endangers the program, and I don’t know how these folks will make it without it.
The industrial kitchen that provides the meals I carry also turns out hundreds of school breakfasts every day for kids who aren’t provided with a proper meal at home. Federal funding for that too is being cut, as is support for the local food banks that help parents feed their kids when school is out.
I firmly believe that a society is judged by how it treats its neediest. I’d like to believe this nation is filled with people who will increase local donations to support the slashed programs providing food security for those who need it most — SNAP, Local Food for Schools, the Local Food Purchase Assistance program, and Meals On Wheels — but I’m skeptical that the billions cut can be replaced with community generosity alone.
For myself, I just hope I’m still driving my route next year. But I’m not optimistic.
I think what you say is what truly being greAt is all about .