IRS rule change for charitable contributions is ‘misguided,’ NJ attorney general says
Continuing a fight against the new federal tax law, New Jersey Attorney General Gurbir S. Grewal sent a letter Thursday to the IRS opposing a proposed rule that would block a workaround to the new cap on state and local tax deductions.
The rule, issued in August, would change the guidelines for deducting charitable contributions from federal tax returns. It would close a loophole under which New Jersey could allow local governments to accept tax payments as charitable contributions that could be deducted from federal tax returns. New Jersey lawmakers passed a law allowing such contributions instead of traditional tax payments this year, in response to the new federal law capping state and local tax deductions at $10,000.
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