Tax Newsletter

• Marital Settlement Agreements and Life Insurance Policies
  Many marital settlement agreements require one party to maintain a life insurance policy on his or her life naming the former spouse as the primary beneficiary. While this provides some financial security for the former spouse, it may... Read more.
• Federal Tax Rules for Royalty and License Fee Income
  Most people who create a work of art or an invention hope to reap financial rewards from their creation. U.S. copyright and patent laws give these creators certain exclusive rights to commercial development and profit from their... Read more.
• Taxation of Pension Plan Distributions, Divorce and QDROs
  An increasingly large portion of the assets of married couples consist of rights to payments and stock from pension plans. In many states such assets are subject to division during a divorce. Divorce and division of property are... Read more.
• Valuation of Estate Assets for Tax Purposes
  Assets owned by a person at the time of their death, whether real or personal property, is commonly referred to as the decedent’s “estate.” After the person dies, the property or proceeds from the sale of such property... Read more.

• Expanding tax credit for businesses retaining workers gains bipartisan support
• If you’re making more on unemployment than working it may mean less help with health insurance premiums — and a tax bill
• Hypocritical HEROES Act Would Give Rich Americans $67,000 In Stimulus ‘Check’ Relief On Average
• What to know about your taxes if you’re getting coronavirus relief from unemployment
• Mnuchin Says Trump Is Focused On Boosting Travel Industry With Tax Breaks And Stimulus

Out-of-Pocket Expenses for Charitable Organizations

You may be able to deduct certain expenses that are related to volunteer services offered to a qualified charitable organization. However, these services should not have been reimbursed or used for personal reasons.

Tax-Deductible Expenses

• Uniforms – You may deduct the cost of a uniform if it is not suitable for everyday use but must be worn when providing a charitable service.
• Travel – As long as the travel is not for personal pleasure, you may be able to deduct expenses such as the cost of gas or tickets for transportation.
• Church deacon supplies – If you are chosen as a candidate for or are an ordained deacon, items such as vestments and books may be tax deductible.
• Conventions – If you are a chosen representative for a charitable organization and must provide services that require overnight stays, meals and lodging may be deductible.
• Caring for a foster child – If you are a foster parent, you may be able to deduct money spent for providing for the well-being of a foster child, as long as you are not providing foster care for profit.
• Assisting underprivileged youth –Your expenses connected with helping certain youths who have been selected by a qualified organization to attend athletic events, movies, or dinners may be deductible.

Non Tax-Deductible Expenses

• The value of the time of your volunteer services.
• A contribution that you have made to a non-qualified organization.
• A contribution or service for which you receive a benefit in return.
• Your personal expenses that are not directly related to charitable services.

In order to deduct any qualified expenses related to charitable contributions or services, you should retain receipts for the expenses. Also, it would be advisable that you consult a tax attorney to determine what items you may or may not actually be able to deduct.

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