topic If I contribute an extracurricular class for my local non-profit school, and make baked goods for that class, can this be deducted, and if yes, how do I calculate? in Education

If I contribute an extracurricular class for my local non-profit school, and make baked goods for that class, can this be deducted, and if yes, how do I calculate?

mosheleib — Mon, 03 Feb 2020 16:46:03 GMT

Re: If I contribute an extracurricular class for my local non-profit school, and make baked goods for that class, can this be deducted, and if yes, how do I calculate?

xmasbaby0 — Mon, 03 Feb 2020 16:53:35 GMT

Even if the school is a qualified charity, the only thing you can deduct is the cost of your ingredients. You cannot deduct anything for your time, skill or expertise as a volunteer.

NON-PROFIT https://ttlc.intuit.com/questions/2902085-are-nonprofits-considered-qualified-charitable-organizations

Re: If I contribute an extracurricular class for my local non-profit school, and make baked goods for that class, can this be deducted, and if yes, how do I calculate?

mosheleib — Thu, 06 Feb 2020 13:41:12 GMT

How do I evaluate the baked goods. Some ingredients are bought strictly for these goods, others are just household items. Do I need to split all ingredients, or could I estimate how much the final baked good would cost in a bake sale or store?

Re: If I contribute an extracurricular class for my local non-profit school, and make baked goods for that class, can this be deducted, and if yes, how do I calculate?

xmasbaby0 — Thu, 06 Feb 2020 14:38:01 GMT

@mosheleib No, you do not use the price it would cost at a bakery or store You use the cost of the actual ingredients you paid money for. A bakery is charging much more for their labor and overhead. You may be worried about this for nothing. Unless you have enough itemized deductions to exceed your standard deduction, your charitable donation will have no effect on your tax due or refund.

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns. The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund. The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income. It is not a refund.

2019 Standard Deduction Amounts

Single $12,200 (+ $1650 65 or older)

Married Filing Separate $12,200 (+ $1300 if 65 or older)

Married Filing Jointly $24,400 (+ $1300 for each spouse 65 or older)

Head of Household $18,350 (+ $1650 for 65 or older)

Look on line 9 of your 2019 Form 1040 to see your itemized/standard deduction amount

Re: If I contribute an extracurricular class for my local non-profit school, and make baked goods for that class, can this be deducted, and if yes, how do I calculate?

mosheleib — Fri, 07 Feb 2020 13:56:55 GMT

Thanks for the advice. I am actually itemizing and that is why I’m trying to count up every dollar I could. Between property tax, mortgage interest and charitable contributions, I am way over 24k.

Re: If I contribute an extracurricular class for my local non-profit school, and make baked goods for that class, can this be deducted, and if yes, how do I calculate?

xmasbaby0 — Fri, 07 Feb 2020 14:30:07 GMT

Are you making the common mistake of just adding up all the amounts for your itemized deductions without considering the caps and thresholds that must be met?

STANDARD DEDUCTION

Your standard deduction lowers your taxable income. It is not a refund.

2019 Standard Deduction Amounts

Single $12,200 (+ $1650 65 or older)

Married Filing Separate $12,200 (+ $1300 if 65 or older)

Married Filing Jointly $24,400 (+ $1300 for each spouse 65 or older)

Head of Household $18,350 (+ $1650 for 65 or older)

Look on line 9 of your 2019 Form 1040 to see your itemized/standard deduction amount