The 2017 Tax Cuts and Jobs Act (TCJA) decreased taxpayers’ ability to itemize many deductions, including making charitable contributions. This change has had a significant effect on charitable organizations, with the Urban-Brookings Tax Policy Center estimating that the cumulative loss to charitable organizations was $240 billion from 2017-2021.

During tax years 2020 and 2021, non-itemizing taxpayers were allowed to deduct up to $600 for those married, filing jointly, and $300 for single filers. However, in 2022, taxpayers could only deduct charitable contributions if they itemized and filed a Schedule A (Form 1040).

There are various strategies to consider, and Kakenmaster & Associates can advise you as to what strategy or combination of strategies might work best for your unique tax picture.

New legislation in the American Rescue Plan Act of 2021 changed the reporting requirements for third-party payment settlement networks (such as PayPal, Venmo, Amazon, etc.) to issue Form 1099-Ks…

We have several options for filing your 2022 tax return. Read more to determine what works best for you…

New laws allow a one-time debt relief (cancellation) of up to $20,000 for a Federal Pell Grant while in college or up to $10,000 if you didn’t receive a Federal Pell Grant in college but received another type of loan (see the U.S. Department of Education website for a listing of eligible loans). The debt relief applies only to loan balances you had before June 30, 2022. Parents with eligible student loans of their own can submit their own application for debt relief that will be processed separately from the one your child submits…

Additional Frequently Asked Questions for the 2022 State of Illinois Tax Rebates…