QUOTE (JU5TIN @ Jan 15 2008, 09:49 PM) <{POST_SNAPBACK}>
i am in for a yearly amount,
also can we claim this as a non profit? ie tax break???? or do you have to file to become a non profit
because i know that would get me to donate more
i am fresh out of high school and don't know a lot, and heard about donating to non-profits being a tax break. I don't know how any of it is done, since i am on my second time paying/ doing taxes
Justin
also can we claim this as a non profit? ie tax break???? or do you have to file to become a non profit
because i know that would get me to donate more
i am fresh out of high school and don't know a lot, and heard about donating to non-profits being a tax break. I don't know how any of it is done, since i am on my second time paying/ doing taxes
Justin
Nope. There are a few problems with that. First and foremost there is very little any Canadian site will be able to do for your state or federal USA taxes regardless of its status - RPR would have to be a registered 501c3 group in the USA to get the deduction.
Second, the government hands those out for mainly humanitarian causes - support groups like Al-Anon, grief support, community centers, public broadcasting channels - that kind of thing. Enthusiasts are great communities but seldom have a humanitarian agenda. Once you get that status, your books are open by law to public review so anyone can find out if you're making a profit or not - which I doubt Tom would really enjoy.
Third, and most relevant: Straight out of high school you'd have to donate about twenty percent of your income to nonprofits to make the standard deduction not worth taking - you are probably better off not itemizing, which is the only time deductions come into play. I'm assuming you make less than 30K per year - nearer the 50K mark itemizing starts to make a lot of sense. If you are forced to itemize for some other reason (business / corporate return, other change of status causes like living in two different states in one year, etc.), you might as well have the deduction recorded - otherwise just take the standard amount and save yourself grief. Since you're new to taxes, I strongly recommend you take the financial hit and have your return professionally prepared at least once - since that will give you the opportunity to get your questions answered by people who know. H&R Block gives good value for money that way in my experience, Jackson-Hewitt not so much.
-Gil