The National Taxpayer Advocate has made available for download their article, “Giving Thanks, Giving Tuesday (November 29): Tax Benefits and Charitable Contributions”, published in The National Taxpayer Blog. The article begins as follows:
On Thanksgiving, together with my family, I will pause, reflect, and give thanks for the good in my life, both personally and professionally. This year, I am especially grateful for my TAS family, for their time, energy, and dedication to making a positive impact in taxpayers’ lives. I also want to extend my gratitude to all of those working for America’s taxpayers and improving tax administration, including just a few: Low Income Taxpayer Clinics, Taxpayer Advocacy Panel volunteers, Volunteer Income Tax Assistance volunteers, Tax Counseling for the Elderly volunteers, Congress and its staff, and IRS staff and leadership.
During this time, in addition to giving thanks, many individuals and families volunteer to give back to our communities or give financial support to charitable organizations by making donations. The Tuesday following Thanksgiving has become what is known as “Giving Tuesday.” It is a day that encourages people to do good. Many choose to mark this day by donating to their favorite organizations. In honor of Giving Tuesday, many companies and brands offer matching gifts as their way of giving back. Check with your employer or the organization to see if they offer matching gifts.
While many individuals, families, or businesses focus on the charitable benefits they can provide to a nonprofit organization, they should note that charitable contributions can be tax-deductible. However, not all donations may qualify for claiming a deduction on a tax return or provide an offset for taxes due. The IRS offers a helpful Can I Deduct My Charitable Contributions? tool to help users determine whether a donation is tax-deductible. If it is deductible, taxpayers most often can claim it as an itemized deduction on Schedule A, Form 1040, Itemized Deductions. Taxpayers can deduct charitable contributions in an amount up to 50 percent of their income, per IRC § 170(b)(1)(A). Find more information in IRS Publication 526, Charitable Contributions.
To view the full article, click: “NTA Blog: Giving Thanks, Giving Tuesday (November 29): Tax Benefits and Charitable Contributions”
Posted by Melissa Zheng, Associate Editor, Wealth Strategies Journal.