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Taxes: Interest Income & Charitable Donations

2021 – 02/05 As tax season kicks off on Feb. 12, 2021, the IRS wants to remind taxpayers of some points they might miss. For example, taxpayers who received interest income (of at least $10) from the IRS will be sent a Form 1099-INT, which must be reported on the 2020 tax return. Many received this income related to last year’s delayed filing deadline (to July 15, 2020, related to COVID-19). Generally, taxpayers who claim the standard deductions on their federal tax returns can’t deduct charitable donations. But thanks to the CARES Act, taxpayers can deduct up to $300 in donations to qualified charities on their 2020 federal returns, even if they claim the standard deduction.

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