Archive for the ‘Contributions’ Category

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Ten Tips for Taxpayers Making Charitable Donations

by P. Lewis Robinson
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Aug
31

Did you make a donation to a charity this year? If so, you may be able to take a deduction for it on your 2010 tax return.

Here are the top 10 things the IRS wants every taxpayer to know before deducting charitable donations.

  1. Charitable contributions must be made to qualified organizations to be deductible. You can ask any organization whether it is a qualified organization and most will be able to tell you. You can also check IRS Publication 78, Cumulative List of Organizations, which lists most qualified organizations. IRS Publication 78 is available at IRS.gov. (more…)
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Haiti Relief Workers Qualify for Combat Zone Extension; Military Personnel and Designated Civilians Have at Least 180 Days to File and Pay

by P. Lewis Robinson
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May
4

WASHINGTON — Members of the military and certain civilians providing earthquake relief in Haiti have additional time to file their 2009 returns and pay any taxes due, the Internal Revenue Service announced today.

Deadlines for taking care of a variety of federal tax matters are automatically extended for persons serving in a combat zone or a contingency operation. Operation Unified Response is a contingency operation, thus giving designated persons providing earthquake relief in Haiti the same extensions that are available to military and support personnel serving in Iraq, Afghanistan, and other combat zone localities. (more…)

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Ten Tips for Deducting Charitable Contributions

by P. Lewis Robinson
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Mar
26

When preparing to file your federal tax return, don’t forget your contributions to charitable organizations. If you made qualified donations last year, you may be able to take a tax deduction if you itemize on IRS Form 1040, Schedule A.

The IRS has put together the following 10 tips to help ensure your contributions pay off on your tax return.

  1. Contributions must be made to qualified organizations to be deductible. You cannot deduct contributions made to specific individuals, political organizations and candidates. (more…)
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Ten Facts About Claiming Donations Made to Haiti

by P. Lewis Robinson
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Jan
26

If you are donating to charities providing earthquake relief in Haiti, you may be able to claim those donations on your 2009 tax return. Here are 10 important facts the Internal Revenue Service wants you to know about this special provision.

  1. A new law allows you to claim donations for Haitian relief on your 2009 tax return, which you will be filing this year.
  2. The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti.
  3. To be eligible for a deduction on the 2009 tax return, donations must be made after Jan. 11, 2010 and before March 1, 2010. (more…)
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Deduction tips for contributors to Haiti relief effort

by P. Lewis Robinson
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Jan
19

http://www.irs.gov

On its website IRS has posted deduction tips for taxpayers planning to make contributions to aid Haitian earthquake victims.

Contributors who itemize deductions are reminded that:

… Contributions to domestic, tax-exempt, charitable organizations providing assistance to individuals in foreign lands are tax-deductible, provided that the U.S. organization has full control and discretion over the uses of donations.
… Contributions to foreign organizations generally are not deductible, nor are contributions to benefit specific individuals or families.
… To substantiate charitable contributions of money, regardless of amount, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution.
… Contributions are deductible in the year made.

RIA observation: A bill has been introduced in Congress to permit Haitian relief donors to elect to treat contributions made after Jan. 11, 2010, and before Mar. 1, 2010, as if the contributions had been made on Dec. 31, 2009. If the election is made, Haiti relief donations would be deductible on the 2009 return, not the 2010 return. This option would be available only if the contribution is made in cash and otherwise meets the requirements for charitable contribution deductions under Code Sec. 170 .

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Deductible Expenses/Contributions for 2009

by P. Lewis Robinson
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Dec
24

Charges to your credit cards (not store credit cards) are deductible on the date charged rather than the date payment was made on the credit card. Thus, if you charge deductible expenses/charitable contributions on before December 31, 2009, they can be used as deductions on your 2009 respective income tax return.

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Special Charitable Contributions for Certain IRA Owners

by P. Lewis Robinson
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Nov
15
 

IRS Tax Tip 2009-23

As an alternative method for donating to a charity, certain taxpayers may transfer funds from their IRA to an eligible charitable organization. Here are ten things taxpayers who are thinking about making such a donation will need to know.

1. The IRA owner must be age 70 ½ or older.

(more…)
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Qualified Charitable Distributions from IRAs still in effect for 2009

by P. Lewis Robinson
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Oct
30

Charitably Inclined – Qualified charitable distributions (QCDs) are still in effect for 2009. IRA owners age 701⁄2 and older can transfer up to $100,000 of IRA money directly from an IRA to a qualifying charity. Those who are most willing to give to charity are also those who may not need their RMDs for this year.

It will usually pay for them to roll the money back into an IRA and give to the charity from there. The IRA owner does not include the QCD in income, nor does he receive a tax deduction for the donation.

But tax-wise this works out better than if he withdrew the funds from his IRA and donated them to charity. He would receive a tax deduction for the funds donated, but he would also have to include the distribution in income. That would increase his adjusted gross income which in turn could cause deductions, exemptions, tax credits and other tax benefits to be lost. This would increase the overall tax bill. It will pay for him to roll the unwanted RMD back into an IRA and transfer the funds to the char- ity from the IRA.

The higher your  income, the more it makes sense to use the QCD approach.

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Ga counties qualifying for Federal Disaster Assistance

by P. Lewis Robinson
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Sep
30

Updated 9/28/09 to include Bartow, Catoosa, Coweta, DeKalb, Fulton, Gwinnett, Heard, Newton, Rockdale and Walker counties.

ATLANTA — Victims of recent severe storms and flooding in Georgia may qualify for tax relief from the Internal Revenue Service.

Following severe storms and flooding beginning Sept.18, the President declared Bartow, Carroll, Catoosa, Chattooga, Cherokee, Cobb, Coweta, DeKalb, Douglas, Fulton, Gwinnett, Heard, Newton, Paulding, Rockdale, Stephens and Walker counties federal disaster areas qualifying for individual assistance.

 

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Tax deadline extended for Federal Disaster Area

by P. Lewis Robinson
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Sep
29

The IRS has given individuals and businesses in the Georgia disaster counties an automatic extension until December 17, 2009 to file any returns and pay any taxes otherwise due between Sept 18 and Dec 17.

The counties include DeKalb, Fulton, Gwinnett, Cobb and Rockdale Counties, among others. This will be similar to the “tornado extension” several counties received last year.

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