This holiday season taxpayers are receiving a “gift” from Washington, D.C. It’s the Protecting Americans from Tax Hikes Act of 2015 or, simply, the PATH Act. It does more than just extend expired tax provisions for another year. The bipartisan deal makes about one-third of these tax provisions permanent. Many others have been extended for periods ranging from two to five years.
Several of these provisions can produce significant savings for taxpayers on their 2015 income tax returns, but quick action (before January 1, 2016) may be needed to take advantage of some of them.
Learn more about the Path Act of 2015 HERE
Qualified charities. You can only deduct gifts you give to qualified charities. Use the IRS Select Check tool to see if the group you give to is qualified. Remember that you can deduct donations you give to churches, synagogues, temples, mosques and government agencies. This is true even if Select Check does not list them in its database.
Monetary donations. Gifts of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. You must have a bank record or a written statement from the charity to deduct any gift of money on your tax return. This is true regardless of the amount of the gift. The statement must show the name of the charity and the date and amount of the contribution. Bank records include canceled checks, or bank, credit union and credit card statements. If you give by payroll deductions, you should retain a pay stub, a Form W-2 wage statement or other document from your employer. It must show the total amount withheld for charity, along with the pledge card showing the name of the charity.
The United Way of the Lowcountry is an IRS qualified charity focusing on the needs of Beaufort & Jasper County residents.
Take a moment to learn more about our organization with the video below and consider making a year end gift today.