How to receive a charitable tax giving deduction at the end of the year
Oct 26, 2020
Contributing finances to a charitable organization is good for several reasons. Primarily, it is good for the local community and the rest of the world in that your contributions help make positive things happen. Secondly, it is good for you in that the contributions you make are considered tax deductible.
Contributing to charitable taxes at the end of the year is a strategic move that can help you lower your taxable income into the next lowest tax bracket. As long as the organization you are donating to has a 501(c)(3) status, your donations can be counted as tax deductible.
Receiving a charitable giving tax deduction at the end of the year
Charitable cash contributions can be deducted as a Schedule A itemized deduction in your tax filing paperwork. Usually, this deduction is limited to a maximum of 60% of your adjusted gross income (AGI). However, contributions to qualified organizations can be deducted to up to 100% of your AGI.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in 2020 has made some changes to charitable giving that can help taxpayers gain a further advantage. It allows you to take a $300 charitable giving tax deduction on top of your standard deductions.
To receive a tax deduction for charitable contributions, it is important that you complete your IRS Form 1040 and correctly itemize your deductions in the Schedule A form. A tax preparer or financial advisor can help you identify deductible contributions and file them correctly.
Talk to a ProVise CFP® professional about charitable giving tax deductions
Would you like to help the world and receive a tax advantage as a “thank-you” for it? Contributing to charitable organizations at the end of the year is an excellent strategy for your personal financial planning. However, it can be difficult to decide how much to give when you are not sure about your current financial circumstances or how to plan for the future. At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can help.
We can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about charitable giving tax deductions? Contact ProVise today to schedule a complimentary consultation.