You'll need to sign in or create an account to connect with an expert.
That is awesome.... did you do this through any sort of organized, recognized charity? If so, you can enter the cost of your supplies and postage as a charity donation.
And.....will you have enough other itemized deductions to exceed your standard deduction? Donations can only have an effect on your refund or tax due if you have enough itemized deductions to exceed your standard deduction.
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. (Only the amount that is MORE than 7.5% of your AGI counts) 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. You will see your standard or itemized deduction amount on line 12 of your 2020 Form 1040.
2020 Standard Deduction Amounts
Single $12,400 (+ $1650 65 or older)
Married Filing Separate $12,400 (+ $1300 if 65 or older)
Married Filing Jointly $24,800 (+ $1300 for each spouse 65 or older)
Head of Household $18,650 (+ $1650 for 65 or older)
You can deduct out of pocket costs for supplies if you donated to a registered tax exempt organization. They should give you a receipt or acknowledgement letter of your gift. (The letter does not have to specific value, you will prove that in other ways.). Gifts to specific individuals are never deductible even if the purpose is charitable.
You can deduct the cost of materials, as well as mileage driving to buy supplies and drop off the finished masks, if you kept records of your mileage. You can't deduct anything for the cost of your time.
These gifts would be a schedule A itemized deduction, if you itemize your other deductions. This gift is not eligible for the special $300 charity gift deduction because to be eligible, such gifts must be money only (cash, check, credit card).
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
domenii
New Member
samantha-bacani-
New Member
StuAdler
Level 1
starlettam83
New Member
masonparent
Level 3
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.