Typically, tax law limits charitable deductions to 60% of your adjusted gross income (AGI). However, there is a temporary suspension of the limits on deductible charitable contributions under the CARES Act. For a contribution to qualify, it must be a cash contribution made to a qualifying organization during the 2020 calendar year. Donor Advised Funds
Posted ByThe Coronavirus Aid, Relief, and Economic Security (CARES) Act added an above-the-line tax deduction for 2020. Taxpayers who make a qualified charitable contribution and who do not itemize their deductions using Schedule A may be eligible for a deduction from the calculation of gross income.
Posted ByA Qualified Charitable Distribution (QCD) is a helpful tax-planning tool for those who are charitably inclined. It is a charitable donation from an Individual Retirement Account (IRA).
Posted ByIf you’re one of the millions of self-employed people who pay for their own health insurance for themselves and their families, you may be entitled to a special tax deduction.
Posted ByPreviously, the IRS allowed individuals to deduct qualified medical expenses that exceeded 7.5% of their adjusted gross income. However, the Tax Cuts and Jobs Act changed this effective January 1, 2019. Now, taxpayers may deduct the amount of qualified medical expenses that exceed 10% of their Adjusted Gross Income (AGI).
Posted ByThe IRS has announced that in 2019, the estate and gift tax exemption will be increased to $11.4 million per individual, up from $11.18 million in 2018. This means that an individual can leave $11.4 million to heirs and pay no federal estate or gift tax and a married couple will be able to leave up to $22.8 million. While the federal exemption amount is considerably high, there are some states that have lower state estate and gift tax exemption amounts.
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