“Master your strengths, outsource your weaknesses.”
Ryan Khan – Founder of The Hired Group
This is a quote that I have on the home page. This quote says it all when outsourcing functions for a business. When you understand that certain duties are just not for your to do…. you outsource.
My strength is in numbers! I heard a phase a few weeks ago about being a Numbers Nerd. Yep, that would be me.
What are your strengths?
What are your weaknesses?
I started filing my taxes last week just to find out that you can now claim charitable donations even if you use the Standard Deductions. When I was working in CPA’s, you were only able to claim charitable tax donations when you itemized. I was quite happy to learn that I could claim what I have donated! Here is an excerpt from IRS.gov.
Ordinarily, individuals who elect to take the standard deduction cannot claim a deduction for their charitable contributions. The law now permits these individuals to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to certain qualifying charitable organizations. Nearly nine in 10 taxpayers now take the standard deduction and could potentially qualify to claim a limited deduction for cash contributions.
These individuals, including married individuals filing separate returns, can claim a deduction of up to $300 for cash contributions made to qualifying charities during 2021. The maximum deduction is increased to $600 for married individuals filing joint returns.
Cash contributions to most charitable organizations qualify. However, cash contributions made either to supporting organizations or to establish or maintain a donor advised fund do not qualify. Cash contributions carried forward from prior years do not qualify, nor do cash contributions to most private foundations and most cash contributions to charitable remainder trusts. In general, a donor-advised fund is a fund or account maintained by a charity in which a donor can, because of being a donor, advise the fund on how to distribute or invest amounts contributed by the donor and held in the fund. A supporting organization is a charity that carries out its exempt purposes by supporting other exempt organizations, usually other public charities. See Publication 526, Charitable Contributions for more information on the types of organizations that qualify.
Cash contributions include those made by check, credit card or debit card as well as amounts incurred by an individual for unreimbursed out-of-pocket expenses in connection with the individual’s volunteer services to a qualifying charitable organization. Cash contributions don’t include the value of volunteer services, securities, household items or other property.
The law now permits electing individuals to apply an increased limit (“Increased Individual Limit”), up to 100% of their AGI, for qualified contributions made during calendar-year 2021. Qualified contributions are contributions made in cash to qualifying charitable organizations.
As with the new limited deduction for nonitemizers, cash contributions to most charitable organizations qualify, but, cash contributions made either to supporting organizations or to establish or maintain a donor advised fund, do not. Nor do cash contributions to private foundations and most cash contributions to charitable remainder trusts
Unless an individual makes the election for any given qualified cash contribution, the usual percentage limit applies. Keep in mind that an individual’s other allowed charitable contribution deductions reduce the maximum amount allowed under this election. Eligible individuals must make their elections with their 2021 Form 1040 or Form 1040-SR.
Businesses donating food inventory that are eligible for the existing enhanced deduction (for contributions for the care of the ill, needy and infants) may qualify for increased deduction limits. For contributions made in 2021, the limit for these contribution deductions is increased from 15% to 25%. For C corporations, the 25% limit is based on their taxable income. For other businesses, including sole proprietorships, partnerships, and S corporations, the limit is based on their aggregate net income for the year from all trades or businesses from which the contributions are made. A special method for computing the enhanced deduction continues to apply, as do food quality standards and other requirements. <end excerpt>
Well, I know that is quite a read. But for an individual or family who does not have enough deductions to itemize, and can now claim. So, record keeping it vital as for all things. And here is going to come in handy. Go back through your expenses and calculate what you have donated to charitable organizations. As it says, see Publication 526, Charitable Contributions for more information on the types of organizations that qualify.
If you want to check out more, here is the page that I garnered the information from
From your happy, helpful bookkeeper,
Tina
Hey hey, ho ho. I am doing it!! I am starting my own bookkeeping service!!