Another above-the-line charitable contributions thread

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Swimmer
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Another above-the-line charitable contributions thread

Post by Swimmer »

I know this has been discussed ad nauseum and (I think) after reviewing IRS code the final decision was that up to $300 charitable contributions can be claimed on 1040 per TAXING UNIT for those claiming standard deduction.

Well, as I Fed retiree, I received an email from OPM yesterday. This is the pertinent paragraph cut and pasted:

Did you know that new legislation in 2020 allows taxpayers to deduct
$300 ($600 for married couples) for qualifying charitable donations even
when taking the standard deduction? Additionally, if you need to make a
required minimum distribution from your retirement account, you can give
to your favorite charities through the CFC! Pledge today at
GiveCFC.org.


I sent them a reply requesting verification of the above. Let’s just say I’ll be very surprised to get a reply.
jebmke
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Re: Another above-the-line charitable contributions thread

Post by jebmke »

The IRS has spoken on this I believe.
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BogleTaxPro
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Re: Another above-the-line charitable contributions thread

Post by BogleTaxPro »

The IRS draft instructions state explicitly that it's $300 per return regardless of filing status. See instructions for line 10b on page 29:
https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf
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Artful Dodger
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Re: Another above-the-line charitable contributions thread

Post by Artful Dodger »

Interesting.

There are multiple sites saying the $600 for joint filing, and others stating $300. We're above the $600 anyway, so will just wait for the IRS publication or Turbo Tax.

Edit after reading BogleTaxPro's post and draft: Well, that's pretty clear - no more than $300 regardless.
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HueyLD
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Re: Another above-the-line charitable contributions thread

Post by HueyLD »

Per the draft 1040 instructions:

“ Enter the total amount of your contributions on line 10b. Don't enter more than $300.”

It is very clear.
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Swimmer
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Re: Another above-the-line charitable contributions thread

Post by Swimmer »

HueyLD wrote: Fri Nov 20, 2020 12:36 pm Per the draft 1040 instructions:

“ Enter the total amount of your contributions on line 10b. Don't enter more than $300.”

It is very clear.

I agree, but can you see the many thousands who received false information from OPM? Incompetence. Unacceptable. I guess I’m frustrated because so few do their jobs with accuracy these days. Good thing I retired!
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HueyLD
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Re: Another above-the-line charitable contributions thread

Post by HueyLD »

I think it is a good practice to get information from an official source.

For example, get tax info from the Internal Revenue Code and the IRS. And get civil service retirement info from the OPM.

No withstanding the above, I found it unfortunate for the misinformation from a well known government agency.
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arcticpineapplecorp.
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Re: Another above-the-line charitable contributions thread

Post by arcticpineapplecorp. »

Swimmer wrote: Fri Nov 20, 2020 4:48 pm
HueyLD wrote: Fri Nov 20, 2020 12:36 pm Per the draft 1040 instructions:

“ Enter the total amount of your contributions on line 10b. Don't enter more than $300.”

It is very clear.

I agree, but can you see the many thousands who received false information from OPM? Incompetence. Unacceptable. I guess I’m frustrated because so few do their jobs with accuracy these days. Good thing I retired!
this should come as no surprise considering the OPM breach in 2015:

https://www.google.com/search?client=fi ... opm+breach

It's $300 max. That's the word I just received in training the other night for my volunteer income tax assistance VITA:
https://www.irs.gov/individuals/free-ta ... -taxpayers
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bsteiner
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Re: Another above-the-line charitable contributions thread

Post by bsteiner »

The statute isn't clear, at least to me. Section 2204(a)(22) of the CARES Act, https://www.appropriations.senate.gov/i ... %20ACT.pdf (see page 171) adds new Code Section 62(a)(22), https://www.law.cornell.edu/uscode/text/26/62, which allows a deduction of up to $300 for taxpayers who don't itemize.

However, footnote 76 on page 22 of the description of the tax provisions of the CARES Act by the staff of the Joint Committee on Taxation, https://www.jct.gov/publications/2020/jcx-12r-20/, says that the $300 limit applies to a joint return.

While it's not part of the statute, the explanations by the staff of the Joint Committee on Taxation generally carry considerable weight.

Given the amount involved (the tax on $300), it's unlikely that any taxpayers filing joint returns will go to court over it.
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