More than 4, 800 EVD-related deaths and more than 9,900 suspected and confirmed cases of EVD have been reported in the countries of Guinea, Liberia, and Sierra Leone of West Africa through October 22, 2014. Many Americans are making donations to help the victims of Ebola in these countries. To assist the donators in their cause, the IRS has implemented a tax relief program so you can easily make charity contributions towards Ebola and also save on taxes.
If you are thinking of donating to Ebola victims in Guinea, Liberia and Sierra Leone, then you can save on taxes. To take the tax advantage of your charitable contribution, make sure that the charity you donate to is a qualified charity. Only donations to qualified charities are tax deductible.
Also, the IRS has issued guidance to people on how they can make charity contributions to Ebola victims in Guinea, Liberia and Sierra Leone. Employees can donate their vacation, sick or personal leave in exchange for employer cash payments made to qualified tax-exempt organizations that are providing relief to Ebola victims in the above mentioned countries.
This is the special relief plan the IRS has designed. The donated leave will not be included in the employees’ income and wages. Also, employers can deduct the amount of the cash payment. The donation must be made before January 1, 2016.
When making cash payments to a charity, you may check their tax-exempt status using the IRS tool: EO Select Check. Tax-exempt status is given to an organization that files Form 990 series returns or notices annually and meets the qualifications. Using this tool, you can also determine the deduction that you can claim on your tax return.
Labels: IRS, Tax Deductions, Tax News, Taxpayers