It’s the time of year that brings out the best in us. The vast number of charitable events such as toy drives, coat drives, food collections and such and the massive response that they garner are clear evidence of our charitable nature.
While our efforts are not based on personal or selfish desires it is worth noting that they can be of an unexpected benefit come tax time.
Under temporary IRS rules taxpayers who are taking the standard deduction can now deduct charitable gifts of $300 for an individual and $600 for a couple on the 2021 tax return.
In the past this deduction was only available to taxpayers who itemized their deductions. The IRS estimates that under this temporary rule 9 out of 10 tax filers will now be able to take advantage of the charitable gift deduction who previously could not.
As always Beige Law, PLLC is here to help you address any tax issues that you have with the IRS or New York State.