A New Jersey bill that would permit towns and cities to give homeowners tax credits in exchange for counting property tax
payments as charitable contributions is poised for a final vote in the Legislature next month.
«Many states already have laws in place granting state income tax credits for donations to certain funds, and the IRS has allowed taxpayers who take advantage of these credits to deduct
their payments as charitable contributions rather than as state taxes,» the analysis stated.
Not exact matches
But given that the tax bill severely curtails the state and local deduction for most if not all individuals, many more taxpayers could take advantage of state - level initiatives that essentially reclassify state and local tax
payments as federal
charitable contributions.
Another would reclassify state income taxes
as charitable contributions to state government, allowing taxpayers to then claim the
payments as deductions on their federal income taxes.
There shall be allowed
as a deduction any
charitable contribution (
as defined in subsection (c)-RRB-
payment of which is made within the taxable year.
However, the exclusion is limited to amounts paid for tuition (not room and board or other expenses) and the
payment does not count
as a
charitable contribution.
Record those expenses in budget categories, such
as groceries, entertainment, automobile repairs, vacations, savings and investments, mortgage
payments, taxes,
charitable contributions, and any others you deem necessary.
However, premium
payments may be deductible and expensed if they are part of alimony
payments or
as charitable contributions.
Just
as we make
charitable contributions to charities such
as the Heart Association or to our local food bank or to our alma mater to support their activities, the
payment of TAOLI membership dues can be viewed
as a
contribution to The Institute's activities and support our mission of empowering individuals to achieve emotional, physical and financial well - being.
About 58 percent said they'd choose to impose a higher tax rate to allow for such deductions
as mortgage interest, state and local tax
payments, and
charitable contributions.
Dues
payments to the REALTOR ® Association are not deductible
as charitable contributions for federal income tax purposes.
Payments to the Association / Board of Realtors ® are not deductible
as charitable contributions.