United Group Insurance

Tax law changes allow for more deductions for charitable giving

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December 2nd, 2021 by Ric Hanson

(Radio Iowa) – Iowans who made a donation to charity on Giving Tuesday in order to get a tax deduction are fortunate this year as far as their federal returns. I-R-S spokesman Christopher Miller says changes to tax laws mean you can still file a simple return and deduct at least some of those donations.  Miller says, “It certainly opens up avenues for taxpayers who still want to make a donation and take a deduction for those donations but find it more advantageous to take the standard deduction.” That means you can deduct 300 dollars in donations on the standard 10-40 or 10-40 E-Z form without filing more paperwork.

“You’re still able to take that standard deduction,” Miller says, “and give to a qualified charitable organization and take a deduction on your tax return this year.” If you’re still looking to make a donation before year’s end, make sure you’re giving to a legitimate group. Miller says it’s vital to use a credit card or a check when donating and to get a receipt.  “Don’t fall for or be pressured into donating by a gift card, like an iTunes gift card or a wire transfer,” Miller says. “That should be a big red flag to people that the charity is not for real.”

Also, he says to make sure the charity you’re singling out qualifies for donations under federal tax laws. Find a list of qualifying charities at irs.gov.