Kind of off topic for Stimulus Money but...I'll bite. IMO anyone who eliminates their "charitable contributions" because the tax treatment thereof has been reduced or eliminated should probably look up the term "charitable".
@havingfun, I am unclear on current deductions regarding charitable contributions (using your Stimulus $$). mayhem has a good read on what I've seen in my Klasser tax guide. The bullet points of covid relief $$$: any Economic Impact Payments (1200/2400, or the recent 600), Emergency Financial Aid, and Disaster Loan Program are not taxed. Tax Pro's will know more
On the subject of fewer people itemizing...largely a result of the limitation of the SALT (state and local tax) deduction to $10,000 per year.
For those in NJ that are owners of a pass-through entity (PTE), NJ has created the BAIT tax, providing a way to get deductibility for unlimited state income taxes paid on PTE income.
If you operate your business as a Sub S corp or a partnership this can apply to you. Presumably your accountant has discussed this with you already.
nnj - You're correct. The Mrs remembered wrong. I just looked it up and the $300 Charitable Deduction came about partly due to Covid, but also because the Tax Cuts and Jobs Act (TCJA) raised the standard deductions so high that many people stopped giving to charity as a result.
Covid hit, causing widespread economic impact and making charitable contributions even more important than ever, so the ability to claim up to $300 in charity even if you don't itemize came into play. Since the TCJA, only about 10% of Americans itemize.
'Hmmm, the Mrs does our Fed taxes and she said that she remembers up to $500 without itemizing, so if it's $300 this year, that's less than last year.'
Up to $500 is incorrect.
$300 for 2020 and 2021 without having to itemize.
2019 had to itemize to get any charitable deduction.
Hmmm, the Mrs does our Fed taxes and she said that she remembers up to $500 without itemizing, so if it's $300 this year, that's less than last year.
"As for claiming charity, I believe you can only do than if you itemize, and you need more than $24k in deductions to do that."
For 2021 the standard deduction for married jointly is $25,100.
You can deduct up to $300 for charitable deductions without itemizing. (In addition to the standard deduction).
As for claiming charity, I believe you can only do than if you itemize, and you need more than $24k in deductions to do that.
Nick, We received $1.200 stimulus each. I donated mine to a religious Catholic organization. Can I deduct the charterable gift?
That extra $150 per month is a cell phone bill and gas or beer money.
Lives were not changed.
To put it in perspective, my front entry door, storm door and dining rm/garage entry door and
installation is gonna cost more.
The millionaires and corporations will benefit more from the tax breaks.
Nick are saying the government did something right not taxing the stimulus.
My 2021 Tax Guide shows the 600/1200 direct Federal payments as non-taxable, but state additions to Unemployment Income ARE taxable
Is the Stimulus money we receive, taxable as income?
That sounds familiar.
I've been referred to as the 'human atm'.
I gave my 21 yr old daughter a stimulus check two weeks ago, she spent it already.
~Allen
Thank goodness the $600 came when it did because that $1200 was just about to run out. Halleluiah we've been saved! Whew!!
Love it! Talk about impeaching someone before they are President, just like Trump “knew” there was election fraud before the election even took place.
How about the children of President Trump running in different Congressional districts in 2022. They should run in Democrat held seats. Donald will campaign with them. One of the three is elected House Leader. In 2023 Republicans impeach Biden and Harris. Speaker becomes President. Make sure it is less than two years to the end of the Presidential term. That way they can run for two full terms. Equal ten years. FORMER PRESIDENT DONALD TRUMP IS APPOINTED ATTORNEY GENERAL. Investigates everywhere, everyone and every crime.
Well, it might take a bit longer, but there have obviously not been that many safeguards to the money disbersed through UI channels back when the $600 a week UI program was in effect. There was a huge scandal here in Washington where fraudulent UI claims, many tied to a Nigerian cyber crime group, bilked the system with at least $300 million in fraudulent claims. And that's just what hasn't been recovered yet. However, to put that in perspective, even if that happened in every state, that would amount to $15 billion in waste/fraud which is 3% of the estimated cost of the extra $1,400 proposal. Plus if it were backward looking to recipients of record, there is no way people could make new fraudulent applications to take advantage.
Another simple expedient would be to cut the income threshold drastically. Not perfect and still brute force, but would at least not add to wealth disparity in the country.
"Mayhem8. yes, barrow it from your great grand children. Real smart!"
HFT - It's not like I (or others that didn't need this money) asked for it, or even had an option to somehow decline it. So, I assume that the "Real smart" comment was aimed at the current administration that came up with this plan ;-)
"The other is how much time/effort/money is spent trying to figure this out?"
That is always the problem with qualifiers.
They increase the budget for the program, and then everyone bitches that all the money is not going to the program.
In this case, it worked pretty well to give people the extra $600. So this will be easier than most...
Mayhem8. yes, barrow it from your great grand children. Real smart!
"Why not give the extra $1,400 to anyone who was unemployed as of December 31st?"
I think this idea is more on track than just giving everyone money, but two things come to mind. One is, I think I'd go back further than Dec 31st. The other is how much time/effort/money is spent trying to figure this out? I otherwise do agree that money went to people (like me) that really didn't need it because I have been working the whole time.
I see where payroll is hard to make for people giving the china virus shot, maybe the 2 grand should be spent getting the shots out quicker, still a damn money grab however, were all screwed in the end..100's of millions now spent on Capital, WH protection due to trump crap.
well that all sounds great, love seeing the rich suffer...if they really ever do,.
