Charitable Donations: Donations must be made to a qualified IRS tax-exempt organization in order to be deductible. There is an on-line IRS tool (http://tinyurl.com/a72f74x) available to check the status of an organization. Churches will not be listed since they are automatically exempt. Donations to individuals are not deductible.
NC Taxes: The NC 2015 personal income tax rate is 5.75% which is a small drop from the 2014 rate of 5.8%. Medical expenses were not allowed as an itemized deduction on the 2014 returns but changes to the tax law in 2015 have again allowed these deductions against income for the 2015 returns. Itemized deductions for the NC return are
- charitable contributions as allowed under federal rules
- property taxes plus home mortgage interest limited to $20,000
- medical expenses that are deductible under for federal tax purposes