The $300 Charitable Deduction: Is it Per Person?

The CARES Act was approved as a reaction to the COVID-19 pandemic in March 2020. This act included a provision allowing taxpayers who do not itemize deductions to deduct up to $300 for above-the-line charitable contributions. In these trying times, this deduction was created to promote charitable contributions. The distinction between this deduction being per person and each tax return, however, has caused some misunderstanding.

The $300 charitable deduction is per tax return, not per individual, is the answer. If you are married and filing jointly, you are only allowed to deduct $300 from your income for charitable purposes. Additionally, you can only deduct $300 from your income for charitable purposes if you are single. As a result, you can only deduct up to $300 from your taxable income for donations of $300 or more.

Are church tithes tax deductible in this regard? Yes, but only if you specifically itemize your deductions. You cannot use your church tithes as a tax deduction if you do not itemize. The same regulations apply to tithes as to other charitable gifts since they are regarded as contributions to charity. If you want to itemize, you may deduct charitable contributions up to 60% of your adjusted gross income.

What distinguishes the terms 990 and 990-pf now? The majority of tax-exempt organizations file Form 990 each year, whereas private foundations file Form 990-PF. Private foundations have their own form since they are governed by distinct laws and regulations than public charities. Organizations must provide details about their finances, business operations, and governance under both formats.

Also, is Form 1023 open to the public? Form 1023 is a public record, yes. It is the form that organizations must submit in order to request tax-exempt status. If an organization satisfies the criteria for tax-exempt status, the IRS evaluates these applications to make that determination. The Form 1023 of the organization becomes public information after it has been approved and is accessible to everyone.

Last but not least, is Schedule B 990 open to the public? Both yes and no, is the answer. Organizations that accept specific sorts of contributions must submit Schedule B together with Form 990. It includes a list of the names and addresses of donors who make annual contributions of more than $5,000. Schedule B is not a public record, although Form 990 is. However, if appropriate, the IRS may provide state representatives or other authorized individuals with Schedule B information.

In conclusion, the CARES Act’s $300 charity deduction applies to each tax return, not to an individual. If you itemize your deductions, church tithes are tax deductible, and there are several forms for various tax-exempt organizations. Schedule B is not usually accessible to the public, unlike Form 1023. Making wise decisions about charitable giving and tax planning requires an understanding of these laws and guidelines.