More Than One Reason to Give Charity

Feb 28, 2021

From Dust to Transfer

More Than One Reason to Give Charity

In 2018, the drastic increase to the standard deduction resulted in far fewer taxpayers claiming itemized deduction. According to the IRS, nearly 90% of taxpayers no longer use an Itemized Deduction and as a result only 10% of all taxpayers can get a tax benefit from charitable contributions.

Congress decided to encourage nonitemizers to increase their donations and passed new rules for 2020 and 2021. Taxpayers can now claim a modest tax deduction even when taking the standard deduction.

For 2020, the Form 1040 allows a deduction up to $300 per return for married couples filing joint returns and single filers. The deduction is $150 for married couples filing separate returns.

For 2021, the Form 1040 allows a deduction up to $600 per return for married couples filing joint returns. The deduction is $300 for married couples filing separate returns and single filers.

JOIN OUR NEWSLETTER

Subscribe to our newsletter to receive the latest tax news and ongoing updates.


Many taxpayers receive identity verification notices from the IRS, and in most cases, the process is straightforward and can be resolved without much difficulty.

You have the following options to verify your identity:

Option 1: Verify through the IRS using your ID.Me account

 


Option 2: Use the IRS Document Upload Tool

    • Please note when they ask for the access code answer "no" and put in the notice/letter type 5447C

    • Alternatively, we can upload the documents on your behalf. (Please note additional fees apply.)

For both options 1 and 2:

    1. Allow at least 30 days to process.
    2. You can then check your status on IRS Where's My Refund or request that we pull your transcript.


    Option 3: Call the IRS

      1. Phone number: 1-267-941-1083

      1. When calling the IRS please note that there could be long wait times. We recommend the best time to call is as close to 1PM Israel time as possible, when the lines first open.

    When speaking with the IRS agent:

      • Let them know you are calling in response to a Letter 5447C letter for tax year 202x.

      • Provide the control number as it appears on the first page of the letter.

      • Be prepared to answer any question they ask from the first 2 pages on both tax returns, including:

          • complete address

          • filing status (Head of Household /Married Filing Separately / Married Filing Joint/ Single)

          • refund amount.

      • If you are unsure of an answer you may ask the agent where it can be found on the return.

      • Know the dates of birth for you and the children on the return

      • Know your mother's maiden name

      • If they ask about W-2 income, tell them since you live outside of the US your income isn’t reported on a W-2, but rather the equivalent form 106 instead.

    They hopefully will not ask any more financial questions.

    If your identity is successfully verified during the call, the IRS will typically inform you immediately. Your refund should then be released within approximately 6-9 weeks.


    Documents Required in All Cases

    Regardless of the verification method you choose, you will need:

      • a copy of the 5447C letter you received

      • the first 2 actual 1040 pages of your 202x and 202x tax returns

    Additional Documents for ID.me or Document Upload Verification

    If you are verifying online through ID.me or using the IRS Document Upload Tool, you will also need:

    Two clear copies of acceptable identification, as listed in the IRS letter (for example passport and license).