Tax Alerts

IRS Reminds Taxpayers of Special $600 Donation Tax Deduction

The IRS has reminded taxpayers that a special tax provision will permit more individuals to easily deduct donations of up to $600 to qualifying charities on their 2021 federal income tax return. Generally, those who take the standard deduction cannot claim a deduction for their charitable contributions. However, a temporary law change allows them to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations.

Individual tax filers, including married individuals filing separate returns, can claim a deduction of up to $300 for cash contributions made to qualifying charities during 2021 under this provision. Married individuals filing joint returns can now claim a maximum deduction of $600.

Contributions made by check, credit card, or debit card, and amounts incurred by an individual for unreimbursed out-of-pocket expenses in connection with their volunteer services to a qualifying charitable organization refer to cash contributions. They do not include the value of volunteer services, securities, household items, or other property. Taxpayers must donate to a qualified charity to receive a deduction. The IRS Tax Exempt Organization Search tool can help check the status of a charity.

The IRS has informed that contributions made to supporting organizations or establishing or maintaining a donor-advised fund do not qualify for a deduction. Further, contributions carried forward from prior years or contributions to most private foundations and most cash contributions to charitable remainder trusts do not qualify. Finally, special recordkeeping rules apply to taxpayers who claim a charitable contribution deduction which includes obtaining an acknowledgment letter from the charity before filing a return and retaining a cancelled check or credit card receipt for cash contributions.

 

IRS Implements Measures to Prevent Refund Delays by Accepting Duplicate Dependent Returns with IP PIN, IR-2024-294

The IRS implemented measure to avoid refund delays and enhanced taxpayer protection by accepting e-filed tax returns with dependents already […]

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IRS Implements Measures to Prevent Refund Delays by Accepting Duplicate Dependent Returns with IP PIN, IR-2024-294

IRSAC Issues 2024 Annual Report with Key Recommendations for Tax Administration, IR-2024-293

The IRS Advisory Council (IRSAC) released its 2024 annual report, offering recommendations on emerging and ongoing tax administration issues. As a […]

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IRSAC Issues 2024 Annual Report with Key Recommendations for Tax Administration, IR-2024-293

IRS Announces Second Remedial Amendment Cycle For Code Sec. 403(b) Pre-Approved Plans, Announcement 2024-38

The IRS announced details for the second remedial amendment cycle (Cycle 2) for Code Sec. 403(b) pre-approved plans. The IRS also addressed […]

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IRS Announces Second Remedial Amendment Cycle For Code Sec. 403(b) Pre-Approved Plans, Announcement 2024-38

IRS Publishes Fiscal Year 2024 Financial Report and Receives Award for 2023 Report, IR-2024-286

The IRS has published its latest Financial Report, providing insights into the Service’s current financial status and addressing key financial […]

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IRS Publishes Fiscal Year 2024 Financial Report and Receives Award for 2023 Report, IR-2024-286

IRS Allocates Unused Low-Income Housing Credits, Rev. Proc. 2024-41

The IRS has published the amounts of unused housing credit carryovers allocated to qualified states under Code Sec. 42(h)(3)(D) for calendar year […]

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IRS Allocates Unused Low-Income Housing Credits, Rev. Proc. 2024-41

IRS Offers Checklist of Reminders as Taxpayers Prepare to File 2024 Tax Returns, IR-2024-297

The IRS has offered a checklist of reminders for taxpayers as they prepare to file their 2024 tax returns. Following […]

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IRS Offers Checklist of Reminders as Taxpayers Prepare to File 2024 Tax Returns, IR-2024-297

FL - Guidance issued on approval of constitutional amendment 5, annual inflation adjustment to homestead exemption value

Amendment 5 was approved by Florida voters in the November 5, 2024, general election for property tax purposes. This amendment: […]

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FL - Guidance issued on approval of constitutional amendment 5, annual inflation adjustment to homestead exemption value

FL - Interest rates for first half of 2025 announced

The floating interest rate applicable to taxes administered by the Florida Department of Revenue on underpayments (deficiencies) and late payments […]

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FL - Interest rates for first half of 2025 announced

FL - Guidance provided on taxability of holiday decorations and lighting

The sale, rental, and associated charges for the design, installation, removal, and storage of holiday decorations and lighting are subject […]

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FL - Guidance provided on taxability of holiday decorations and lighting

IRS Provides Safe Harbor for Amounts Paid for Condoms, Notice 2024-71

The IRS has provided a safe harbor under Code Sec. 213(d) for amounts paid for condoms. Because amounts paid for condoms are […]

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IRS Provides Safe Harbor for Amounts Paid for Condoms, Notice 2024-71