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bchurley1
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I have made over 3,000 mask all donated to native Americans. I have fabric, thread, printing and postage costs. May I deduct any part of my expenses?

 
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2 Replies

I have made over 3,000 mask all donated to native Americans. I have fabric, thread, printing and postage costs. May I deduct any part of my expenses?

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.

 

 

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

 

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)

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

I have made over 3,000 mask all donated to native Americans. I have fabric, thread, printing and postage costs. May I deduct any part of my expenses?

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). 

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