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Tax Tip – Charitable Donations

Here’s how taxpayers can check if their charitable donation is tax deductible

The arrival of the holiday season is when many people think about how they can give back. Often taxpayers want to donate to a charity. The IRS has a tool that can help people figure out if giving to their favorite cause will also give them the gift of a tax deduction.

Tax Exempt Organization Search on IRS.gov allows users to search for tax-exempt charities. Taxpayers can use this tool to determine if donations they make to an organization are tax-deductible charitable contributions.

Here are some key features and functions of the TEOS tool:

  • It provides information about an organization’s federal tax status and filings.
  • Donors can use it to confirm that an organization is tax-exempt and eligible to receive tax-deductible charitable contributions.
  • Users can find out if an organization had its tax-exempt status revoked.
  • Organizations are searchable by legal name or a doing business as name on file with the IRS.
  • The search results are sortable by name, Employee Identification Number, state and country.

Users can also download complete lists of organizations eligible to receive deductible contributions, auto-revoked organizations and e-Postcard filers using links on the Tax Exempt Organization Search page of IRS.gov.

Source, IRS:
Tax Exempt Organization Search: Frequently Asked Questions
How the CARES Act changes deducting charitable contributions
Interactive Tax Assistant, Can I Deduct my Charitable Contributions

Tax Tip – Business Expense Deduction

Here’s who qualifies for the
employee business expense deduction

Employee business expenses can be deducted as an adjustment to income only for specific employment categories and eligible educators.

Taxpayers can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions, unless they are a qualified employee or an eligible educator. They must complete Form 2106, Employee Business Expenses to take the deduction.

If someone falls into one of these employment categories, they are considered a qualified employee:

  • Armed Forces reservists
  • Qualified performing artists
  • Fee-basis state or local government officials
  • Employees with impairment-related work expenses

No other type of employee is eligible to claim a deduction for unreimbursed employee expenses.

Here’s what makes something a qualified expense:

  • Paid or billed during the tax year
  • For carrying on a trade or business of being an employee, and
  • Ordinary and necessary

Taxpayers should know there are nondeductible expenses.
There is a full list of nondeductible expenses in Publication 529, Miscellaneous Deductions.

Source: https://www.irs.gov/newsroom/heres-who-qualifies-for-the-employee-business-expense-deduction

Tax Tip – EIP Registration Day

IRS designates November 10
National EIP Registration Day

The IRS has designated Tuesday, November 10, National EIP Registration Day. This is part of the agency’s final push to encourage everyone who doesn’t normally file a tax return to register to receive an Economic Impact Payment.

This special event will feature support from IRS partner groups including those that work with low-income and underserved communities. These groups will help spread the word about the new November 21 deadline and, in some cases, provide special support for people who still need to register for the payments.

The IRS has already sent nearly 9 million letters to people who may be eligible for the $1,200 Economic Impact Payments but don’t normally file a tax return. The letters along with the special November 10 event urge people to use the Non-Filers: Enter Info Here tool, available only on IRS.gov.

While most eligible U.S. taxpayers have automatically received their Economic Impact Payment, others who don’t have a filing obligation should use the Non-Filers tool to register with the IRS to get their money. Typically, this includes people who receive little or no income.

Who should use the Non-Filers tool
The tool is designed for people with incomes below $24,400 for married couples, and $12,200 for singles who could not be claimed as a dependent by someone else. This includes couples and individuals who are experiencing homelessness.

Anyone using the Non-Filers tool can speed up the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.

People can track the status of their payment using the Get My Payment tool beginning two weeks after they register.

The IRS urges everyone to share this information to help the agency reach as many people before the November 21 deadline.

Source: https://www.irs.gov/newsroom/irs-designates-november-10-national-eip-registration-day