November, 2022 » Brock CPA
Accounting Advisory Business Taxes

The Season of Giving: Understanding Charitable Gift Deductions

With the holiday season fast approaching, many people are thinking about giving back to their communities through charitable donations. It’s important to understand the rules and regulations surrounding charitable gift deductions, so you can maximize the tax benefits of your giving.

To qualify for a tax deduction, the organization you donate to must have tax-exempt status, which means it operates for charitable, religious, scientific, or educational purposes, among others. You can use the IRS’s search tool to verify an organization’s status.

It’s worth noting that changes were made to charitable giving deductions in the 2020 and 2021 tax years due to COVID relief efforts.