We already know that Americans receive a new tax deduction for charitable contributions that they made in 2020 up to the 300 dollar amount. This is a new law for 2020 that works even if they don’t “itemize” their American taxes.
Itemized deductions don’t usually make make financial sense unless the person has things like large interest payments on home mortgages or real estate taxes on the house where the person lives, or very significant health care expenses: but now up to 300 USD paid to an American charity in 2020 is deductible anyway.
Remember, we are talking about 2020, the taxes that ended on 31-Dec, 2020: Normally Americans who live in Israel don’t think about keeping track of the charitable contributions they make to Israeli charities, but if they do make consistent or significant contributions to Israeli charities those deductions can be very substantial. The limits of deducting them are almost the same as the limits for deducting charitable contributions to American charities except that the person must have Israeli income or they cannot deduct the charitable contributions made to Israeli charities at all.
The client is encouraged to set an appointment and discuss this further:
This article is not intended nor should it be construed to be legal advice or tax advice. Neither Weinstein and Co, CPAs nor Alan Moldof, CPA are licensed to give legal advice to Americans. Tax advice can only be given to a person or company after careful study of that client’s prior history, earnings and spending activity. Therefore, each individual should consult privately with a tax advisor on his particular circumstances and contract with a competent CPA for direct advice pertaining to his or her particular situation.
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