Tax deductions

Experts Offer Advice On Taking Tax Deductions News

In the spirit of the holidays, Americans are giving more in December than in any other month, but residents of Cherokee County are finding that Uncle Sam offers fewer incentives to open their wallet.

However, tax preparers and accountants still offer advice on how to donate to charity and prepare for tax season.

According to National Giving Month, last year Americans gave $ 410.2 billion to charities, breaking all previous records, and 31% of all annual giving occurs in December.

Judy Williams, a certified public accountant at Williams & Williams Certified Public Accountants, explained that as of last year, the standard IRS deduction has been high – $ 12,950 for singles, $ 25,900 for jointly filed marriages and surviving spouses, and $ 19,400 for heads of households. This means that households must meet these levels to itemize their charitable giving.

“If you have to worry about charitable giving, you have to remember that the standard deduction is pretty high,” Williams said. “If you’re not in a position to detail, there’s no reason to worry. “

The good news is that the IRS has doubled its first page deductions from last year, so for tax purposes it’s still worth giving.

“They give a double deduction on the first page where you don’t have to itemize. They are up to $ 600 [or $300 per person]Harley Disheroon of the Disheroon Tax Department told Hulbert.

He said taxpayers can give most organizations 503 (c) (3).

“This should include almost all churches and nonprofits,” he said.

Williams added that it is important to understand that the IRS does not recognize organizations that are not a 501 (c) (3). She also warned that taxpayers should donate as soon as possible so as not to miss the deadline.

“Make sure you get your receipt. Make sure you get it by December 31 or by December 31. Do not mail it in the mail on December 31. Get that receipt before that date,” she said. declared.

She said it was a lot easier before the laws were changed in 2018.

“But now with higher numbers it’s harder to find that because it’s a lot of money,” she said.

To meet this threshold, in addition to charitable donations, taxpayers can add health care costs if they exceed 7.5% of adjusted gross income; this figure is reached after state taxes have been withheld from wages, mortgages and property taxes.

Williams also recommends looking for a form for letter 6419, which will show the amount of child tax credit advance payments distributed throughout the year.

“It’s something that even your average person with W2 income is going to get. They’re going to have to have it to drop off. We received a stimulus payment of $ 1,400 in 2021. Last year they sent out stimulus letters. If they send them again, you will need to take this letter to your tax preparer, or do it yourself. At some point you will be asked the question, did you get your $ 1,400 per person on the tax return, ”she said.

Taxpayers should also remember to bring their ID, Social Security cards, and driver’s licenses, as the IRS is fighting fraud this year.

Tax season begins in late January, but Williams doesn’t recommend filing too early as most documents won’t be mailed until January 31.

“Ninety percent of the documents you need, you won’t get them until January 31. Don’t be in too much of a hurry. You don’t want to be one of the first to file, anyway. Make sure you have all of your documents. Every year we have people who on February 15th say, “I have another document. Can we do it again? ‘ It’s not fun for anyone – for you, for them. You will have to pay additional fees because you will have to file a new return, ”she said.