Impact stories and news for the everyday hero • Blog • Spiral

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Impact stories and news for the everyday hero

What&rsquo;s ahead:
<ul class="is-style-none">
<li><a href="#what kind of bank accounts should i have">What kind of bank accounts should I have?</a>
<ul>
<li><a href="#checking accounts">Checking accounts</a></li>
<li><a href="#savings accounts">Savings accounts</a></li>
<li><a href="#money market accounts">Money market accounts</a></li>
<li><a href="#certificates of deposit cds">Certificates of deposit (CDs)</a></li>
<li><a href="#retirement accounts">Retirement accounts</a></li>
<li><a href="#brokerage accounts">Brokerage accounts</a></li>
</ul>
</li>
<li><a href="#and finally what is a giving account">And Finally, What is a Giving Account?</a></li>
<li><a href="#how can spiral help with your financial goals">How can Spiral help with your financial goals?</a></li>
</ul>
<figure class="wp-block-image"><img src="https://lh6.googleusercontent.com/lSID2eGnccZhOw3AhxTQDMyKw1UBqjV9OG1ZwInL3VsBHZksSNBivz4TvWhqszMSLmpGD5ZDmS25eyvXQqqZ0cSF6IvVshPkElsZQYjCnf9OlBjCbuDPnL4T7zQm0c64gkXh3g0G" alt="6 Different Types of Bank Accounts and Their Features">
<figcaption class="wp-element-caption">Photo by<a href="https://unsplash.com/@eduschadesoares?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noreferrer noopener"> Eduardo Soares</a> on<a href="https://unsplash.com/s/photos/bank-account?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noreferrer noopener"> Unsplash</a></figcaption>
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You are an individual with your own circumstances, goals and aspirations. It makes sense that your bank account should also custom fit your life. We will be covering the various types of bank accounts available and the features they offer.
<h2>What types of bank accounts should I have?</h2>
The type of bank account you choose to open will depend upon your own personal situation and financial goals.
It is a good idea to know which type of bank account is best for everyday transactions and which ones may be more suited for other purposes such as retirement or <a href="https://www.spiral.us/blog/what-is-the-importance-of-charity/">charitable giving</a>.&nbsp;
The following is a list of 6 different types of bank accounts and what purposes they are meant to accomplish. Each type of account and each bank may charge varying fees that you should keep in mind We will be covering the range of fees for the various types of accounts.&nbsp;
At the end of the article we&rsquo;ll also share insights about a new kind of Giving Account, which is designed to make it easy for customers to make charitable donations to causes.&nbsp;
<figure class="wp-block-image"><img src="https://lh3.googleusercontent.com/nOltJyA4tt51Fu07x3EBp2kdhh-QVwRpFx7RipEHcVjSSOMgpVx5tBi-MfChu1HNKYHC_otQvIoLX8PkJsWWakR7TTBc14tVTy84tDRkDvXGOt2d_msgwNL2pEYtXnTX_5Q0pA_n" alt="6 Different Types of Bank Accounts and Their Features">
<figcaption class="wp-element-caption">Photo by<a href="https://unsplash.com/@etiennemartin?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noreferrer noopener"> Etienne Martin</a> on<a href="https://unsplash.com/s/photos/bank-account?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noreferrer noopener"> Unsplash</a></figcaption>
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<h3>1. Checking accounts</h3>
If you need to have continuous access to your money and earning interest is not a big deal to you, then you may want to consider opening a checking account. This type of bank account is ideal if you want to deposit funds you will be using on a daily basis.&nbsp;
With a checking account, you will have to make sure to keep enough funds in the account to avoid overdrawing it or <a href="https://www.spiral.us/blog/debit-cards-the-easy-way-to-stay-debt-free/">having debit card</a> purchases declined.
Many banks assess a charge for declining the transaction or returning the check. Some checking accounts do not require a minimum balance.&nbsp;
<h3>2. Savings accounts</h3>
If your goal is to accumulate money you plan to use much later and do not need to access on a regular basis, then you may want to consider opening a savings account.
This type of bank account allows you to earn interest on the funds you deposit. Remember that the interest earned from savings accounts is income for tax purposes.
Savings accounts usually restrict to six (6) the number of times per month you can make withdrawals. Also, there is usually a daily required minimum balance you must maintain.&nbsp;
<figure class="wp-block-image"><img src="https://lh6.googleusercontent.com/7Oa63XCHX89Y1yBvEg8--vB_wzgwp-YPJxvV_EHyDpsNp50Eewo2ilN60Mc4O5p_qqmn9kS8a8BiXZyvdGrSX58sURT7NbEqYMS_RnTMEluKc7mMN_2V-C1FmR7W7j9oiLE18TzY" alt="6 Different Types of Bank Accounts and Their Features">
<figcaption class="wp-element-caption">Photo by<a href="https://unsplash.com/@alschim?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noreferrer noopener"> Alexander Schimmeck</a> on<a href="https://unsplash.com/s/photos/money-markets?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noreferrer noopener"> Unsplash</a></figcaption>
</figure>
<h3>3. Money market accounts</h3>
If you regularly maintain a high account balance in your savings and checking account you may want to consider opening a money market account which can enable you to earn higher interest rates than with most savings accounts. You will also still be able to write checks with this type of account.&nbsp;
On the other hand, <a href="https://www.investopedia.com/terms/m/moneymarketaccount.asp" target="_blank" rel="noreferrer noopener">money market accounts</a> will usually have higher minimum required balances which can typically be as much as $1,000.
Although the range can start as low as no minimum required, from $500 to $1,000 is most common. Also, your number of monthly withdrawals is generally limited to six with money market accounts.&nbsp;
The 4 types of bank accounts mentioned in this article so far are the most commonly used by everyday people. The following three may not be quite as common but they all have special features which you may want to consider for your own situation.&nbsp;
<h3>4. Certificates of deposit (CDs)</h3>
Another type of account you may want to consider if you are interested in earning higher interest rates are certificates of deposit (CDs). However, you should only open one of these types of accounts if you do not need to access the deposited funds on a regular basis.
CDs are designed to hold your deposited capital for a fixed amount of time ranging from three months to five years.&nbsp;
CDs are considered low risk investments because you are guaranteed a specific rate of return as long as you do not withdraw your money early which will result in early withdrawal charges.
It is common for early withdrawal fees to completely negate any interest you had earned with a CD.
<h3>5. Retirement accounts</h3>
If your goal is to put away money for when you retire you may want to think about opening one of the various types of retirement accounts available. <a href="https://www.investopedia.com/articles/retirement/11/5-steps-to-retirement-plan.asp" target="_blank" rel="noreferrer noopener">The main advantage retirement accounts</a> have over other types of accounts is the tax benefits.
These individual retirement arrangements allow you to reduce your taxable income and grow your invested capital while avoiding taxation for which you would normally be liable.
How taxation works will depend upon the type of retirement account you decide to open. Traditional individual retirement accounts (IRAs) and 401(k) accounts allow you to reduce your taxable income.
However, you will pay income tax on this money later when you withdraw the funds.&nbsp;
Another type of retirement account is a Roth IRA which allows you to avoid paying taxes on withdrawals.
On the other hand, funds you contribute to a Roth IRA will not reduce your taxable income.&nbsp;
<figure class="wp-block-image"><img src="https://lh6.googleusercontent.com/Dzq_zb10x-PyBCn-EIbZdDu-1A4W_-wC2bvRhBH2y7RqYw-OnQWia4fMYG3JPDMXEsfM2B56aey1Q722ngD3RukHj9SDrRnWkhCwjvDLqBQtdTWkxZbPli8Xn8-kNdKcxGfI7Shd" alt="6 Different Types of Bank Accounts and Their Features">
<figcaption class="wp-element-caption">Photo by<a href="https://unsplash.com/@bash__profile?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noreferrer noopener"> Nicholas Cappello</a> on<a href="https://unsplash.com/s/photos/stock-market?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noreferrer noopener"> Unsplash</a></figcaption>
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<h3>6. Brokerage accounts</h3>
By opening an account with a securities broker, you will be able to invest in various types of securities such as stocks and bonds.
The money you invest can appreciate if the value of the securities you have invested in increases in market value. Also, you can earn cash or stock payments, also known as dividends, from companies you have invested in.
There is higher risk with brokerage accounts because the value of the securities in which you have invested may lose value.
However, if you want to keep the money invested for several years or decades, can tolerate the risk and are looking for the chance of higher returns, then investing in stocks and bonds historically have out-performed the investment returns on savings accounts and CDs.
Also, you may want to go with a brokerage account instead of a retirement account if you want to invest your money but still wish to be able to withdraw your funds early without incurring a penalty for doing so.
Most retirement accounts will charge you a penalty for withdrawing your funds prior to a specific age, currently 59 &frac12; years old.&nbsp;
<h2>And Finally, What is a Giving Account?&nbsp;</h2>
Spiral, <a href="https://spiral.us">Spiral is the pioneer of the Impact-as-a-Service&trade;</a> platform that helps banks and financial institutions easily embed sustainability, social impact, ESG, and CSR into their businesses, has created a special type of bank account &ndash; &ldquo;Giving Account&rdquo; that enables customers to use a simple mobile application to effortlessly support the causes they care about for actions that are good for humanity and the planet.
Customers can fund a Giving Account from deposits made to their bank account and use the Giving Account to make donations to their favorite charities. Spiral&rsquo;s Giving Account benefits include the ability to:
<ol>
<li>Give effortlessly to 1 million+ charities:&nbsp; Build your giving portfolio and explore amazing new causes to donate to.</li>
<li>Get your donations matched dollar-for-dollar by your bank.</li>
<li>Track donations for tax returns: The Spiral mobile app tracks all your donations so you can easily see who you&rsquo;ve given to, and how much.</li>
</ol>
<h2>How can Spiral help with your financial goals?&nbsp;</h2>
No matter which type of bank account you choose for everyday transactions or other purposes, <a href="https://spiral.us">Spiral is the pioneer of the Impact-as-a-Service&trade;</a> platform that helps banks and financial institutions easily embed sustainability, social impact, ESG, and CSR into their businesses. Their mission is to empower 10,000+ U.S. financial institutions and millions of people to contribute to a better world.
Using Spiral&rsquo;s unique impact-driven products, customers of any bank can fund a Giving Account from deposits made to their regular account and use the Giving Account to make donations to their favorite charities.&nbsp;

The type of bank account you choose to open will depend upon your own personal situation and financial goals.


6 Types of Bank Accounts and Their Features

<div class="wp-block-image">
<figure class="aligncenter"><img src="https://lh4.googleusercontent.com/PDjESmKK6f0U2f5uytVgIITQTNyMrL2bsoCk3F1cvNxn6RowocE55pRwxZJN7ZjUFdf8BusBCe1z4LICAmSn8aS0aI6ylPHdr7Os5GH1XpOZ3Dydndh3N3dYqt7ZSFWXPOiUgWMI" alt="Are Matching Donations Real? How to Maximize Your Charitable Giving">
<figcaption class="wp-element-caption">Photo by<a href="https://unsplash.com/@kattyukawa?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Katt Yukawa</a> on<a href="https://unsplash.com/s/photos/charity?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Unsplash</a></figcaption>
</figure>
</div>
What&rsquo;s ahead:
<ul class="is-style-none">
<li><a style="background-color: var(--wp--preset--color--background); font-family: var(--font-base, 'Noto Sans', -apple-system, BlinkMacSystemFont, 'Segoe UI', 'Roboto', 'Oxygen', 'Ubuntu', 'Cantarell', 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif);" href="#what is a matching donation">What is a matching donation?</a></li>
<li><a href="#is donation matching legitimate">Is donation matching legitimate?</a></li>
<li><a href="#how can i get matching donations">How can I get matching donations?</a></li>
<li><a href="#how does spiral match donations">How does Spiral match donations?</a></li>
<li><a href="#what are some of the top charities to donate to">what are some of the top charities to donate to</a></li>
<li><a href="#start giving back and make an impact now">Start giving back and make an impact now </a></li>
<li><a href="#key takeaways">Key Takeaways</a></li>
</ul>
Everybody has probably seen advertisements from charities and nonprofits claiming to offer matching donations that can enhance the impact of your charitable giving.&nbsp;
You will see claims that these matching donations will double or triple your impact. Many people will get excited about the opportunity to do something for a good cause, but may also be wondering, &ldquo;Are these matching donations real?&rdquo;
Before moving forward you will want to understand exactly what you are signing up for. How do matching donations work? What is matched giving?
The following is a breakdown of what is involved in matched giving along with <a href="https://www.spiral.us/blog/what-is-the-importance-of-charity/">important information you need to know before you start donating</a> to your worthy cause.
<h2 id="what-is-a-matching-donation">What is a matching donation?</h2>
Matching donations are funds that are promised to be donated to a certain charitable cause in proportion to the amount donated from other donors.
Many times foundations and corporations will offer to donate to a nonprofit or charity at a preset ratio, usually 1:1.&nbsp;
For example, a foundation may promise to donate one dollar to match each dollar raised from individual donors responding to a particular solicitation sent in the mail or a specific email.&nbsp;
<h2 id="is-donation-matching-legitimate">Is donation matching legitimate?</h2>
Offering to match donations is completely legal and is a legitimate method for charities and nonprofit organizations to encourage people to give more.&nbsp;
Sixty-five percent of Fortune 500 firms are companies that match donations. More than 18 million people in the U.S. work for a company which offers matching donations to charitable and humanitarian causes.&nbsp;
<h2 id="how-can-i-get-matching-donations">How can I get matching donations?</h2>
Now that you have a good idea of what matched donations are and how they work, you may be excited at the potential of enhancing the impact of your charitable giving.
At this point, you might be asking yourself, &ldquo;How do I get my donations matched?&rdquo; In fact, there are a variety of different ways to have your charitable giving matched.
One way to get your donations matched is to see if your current employer is offering donation matching. Contact your HR team to learn more about giving options.&nbsp;
Another avenue for matching donations is through a foundation which has granted a nonprofit a certain amount of funds in the form of matching donations. Usually, the nonprofit will have to raise <a href="https://en.wikipedia.org/wiki/Matching_funds#Charitable_donations" target="_blank" rel="noreferrer noopener">a specified amount of money </a>from individual donors before the matching funds are released.&nbsp;
These kinds of arrangements help a nonprofit to leverage its already-existent constituents, enhancing the impact of these individual donors in helping a worthy cause.
Banks and financial institutions are some of the types of companies most commonly offering their employees the opportunity to enhance their giving through a matching donation program.&nbsp;
However, it is not often that a banking services provider will offer its customers this same opportunity.&nbsp;
This is what makes Spiral unique.&nbsp; <a href="https://www.spiral.us/">Spiral is the pioneer of an Impact-as-a-Service&trade; platform</a> that helps banks and financial institutions offer donation matching to their customers. Spiral allows banks and financial institutions easily embed sustainability, social impact, ESG, and CSR into their businesses. Their mission is to empower 10,000+ U.S. financial institutions and millions of people to contribute to a better world.
<h2 id="what-are-the-10-best-charities-to-donate-to">The following are some of the top charitable causes:</h2>
<div class="wp-block-image">
<figure class="aligncenter is-resized"><img src="https://lh6.googleusercontent.com/FCoDY7Cx1Nir-CtlUlg0OdQZ7cV8Sl9pDBdnVmIiQm9MLqmJLap3rwePIHnjJnC8WKOgZ6SbFU0AuRBbJJQut2n3tRBLAcC9RL2rFtUtFomW9Xcli3c_mcQCkA6oP4oBe2UbULmk" alt="Are Matching Donations Real? How to Maximize Your Charitable Giving" width="480" height="480" loading="lazy">
<figcaption class="wp-element-caption">Photo by Spiral</figcaption>
</figure>
</div>
Matching campaigns can enhance the <a href="https://www.spiral.us/blog/best-charities-to-donate-to/">impact of your charitable giving.</a>
The following are some of the top charitable causes that qualify for Spiral&rsquo;s matching donation program.
These charities have been carefully selected based upon legitimacy and the positive impact on society.
1.&nbsp;<a href="https://www.cultureforone.org/" target="_blank" rel="noreferrer noopener">Culture For One</a> &ndash; Provides opportunities to expose New York City foster children to the arts and creativity.
2. <a href="https://www.herhealtheq.org/" target="_blank" rel="noreferrer noopener">HERHealthEQ</a> &ndash; Focuses on providing women with equitable standards of healthcare in the developing world. The organization provides medical device equipment that is needed for the treatment of non-communicable diseases.
3. <a href="https://foundationforclimaterestoration.org/" target="_blank" rel="noreferrer noopener">Foundation for Climate Restoration</a> &ndash; Advocates for climate restoration and environmental issues through educational conventions, training and conferences. Also, the organization advocates for policy changes at a local governmental level through petitions and other activities.
4. <a href="https://davidortizchildrensfund.org/" target="_blank" rel="noreferrer noopener">David Ortiz Children&rsquo;s Fund</a> &ndash; Provides support for children needing critical cardiac services in the Dominican Republic and New England.
5. <a href="https://wayuutaya.org/" target="_blank" rel="noreferrer noopener">Wayuu Taya</a> &ndash; Focusing on improving the quality of life for indigenous communities in Latin America. This organization helps indigenous communities obtain access to healthcare, water, food and livelihood.&nbsp;
6. <a href="https://knockknockgiveasock.org/" target="_blank" rel="noreferrer noopener">Knock Knock Give A Sock</a> &ndash; Helps to organize sock drives which aim to provide homeless individuals with fresh socks, a resource which is always in high demand among the unhoused population.&nbsp;
7. <a href="https://www.keepgunsoffcampus.org/" target="_blank" rel="noreferrer noopener">Campaign To Keep Guns Off Campus</a>&nbsp; &ndash; Works to organize against policy proposals that would result in more guns on college campuses. The organization advocates for colleges and universities to ban together to oppose the agenda of the gun lobby.
8. <a href="https://forbesfunds.org/" target="_blank" rel="noreferrer noopener">The Forbes Funds</a> &ndash; Assists in building management capacity for Pittsburgh-based nonprofit organizations. The organization has helped over 530 nonprofits to improve their operations.&nbsp;
9. <a href="https://www.backpacksforlife.org/" target="_blank" rel="noreferrer noopener">Backpacks For Life</a> &ndash; Distributes backpacks to homeless veterans. The organization also provides coaching and mentoring for unhoused veterans in order to help them overcome a variety of hardships with the aim of improving their quality of life.
10. <a href="https://cparf.org/" target="_blank" rel="noreferrer noopener">Cerebral Palsy Alliance Research Foundation</a> &ndash; Funds researchers who are working to develop new treatments and ways to prevent cerebral palsy. The foundation forms global partnerships with researchers, institutes, and other foundations to enhance and enable scientific research on cognitive disorder.&nbsp;
<h2 id="start-giving-back-and-make-an-impact-now">Start giving back and make an impact now</h2>
<div class="wp-block-image">
<figure class="aligncenter is-resized"><img src="https://lh4.googleusercontent.com/hFanT2FssJi8-t1gzMPdxJzA52HpY8RVKyosMOoPKdaVwNvOF2w71JN4dHP27KV649Xb2PCfLjDIU7_25Ph0f8hPj2fYmCAWs-bLcGNhjodBDeJ6eo4Igz0k_N_KVKHuGNZkf2e2" alt="Are Matching Donations Real? How to Maximize Your Charitable Giving" width="540" height="540" loading="lazy">
<figcaption class="wp-element-caption">Photo by Spiral</figcaption>
</figure>
</div>
There is no better time than now to start making a difference in the lives of others. The world is full of suffering unfortunately, but the good news is that you have the power to do something about it.
Learn which are <a href="https://www.spiral.us/blog/best-charities-to-donate-to/">the best charities to donate to</a>!&nbsp;
<div class="wp-block-image">
<figure class="aligncenter is-resized"><img src="https://lh3.googleusercontent.com/1_emNnRxmGbRYybVc_oS_04C6MJS8gOzZvTPA0zcQKzTxh2K_ouou4qQeXW7FMsUy0lCfB6WsD_j_O9b769B34jVPI8-U8EBjCE1gq0oUPGSCmhCxf0OaYVtRWx-9FJ-9zoszh6H" alt="Are Matching Donations Real? How to Maximize Your Charitable Giving" width="450" height="800" loading="lazy">
<figcaption class="wp-element-caption">Photo by<a href="https://unsplash.com/@nicosmit99?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Nico Smit</a> on<a href="https://unsplash.com/s/photos/charity?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Unsplash</a></figcaption>
</figure>
</div>
<h2 id="key-takeaways">Key Takeaways</h2>
<ul>
<li>Matching donations can allow you to enhance the positive impact of giving to charitable causes.</li>
<li>Donation matching is legitimate and completely legal.</li>
<li>Employers may offer donation matching programs.</li>
<li>Some banking services, that use Spiral, also offer donation matching initiatives.</li>
</ul>

Are matching donations real? What to look out for when giving back. A guide to maximizing your philanthropy. Also, a list of the best charities and nonprofits.


Are Matching Donations Real? How to Maximize Your Charitable Giving

This article was fact-checked and verified by <a href="https://www.linkedin.com/in/katherinevarraveto985649161" target="_blank" rel="noreferrer noopener">Katherine Varraveto</a>, CPA. However, this article does not constitute tax advice and was written for educational purposes. For actual tax advice please consult your own CPA.
What&rsquo;s ahead: 
<ul class="is-style-none">
<li><a href="#what is the importance of charity">What is the importance of charity?</a></li>
<li><a href="#do you get a tax break for donating to charity">Do you get a tax break for donating to charity?</a></li>
<li><a href="#how to get a tax break for donations consult your tax advisor">How to get a tax break for donations (consult your tax advisor)</a></li>
<li><a href="#how much do charitable donations reduce taxes">How much do charitable donations reduce taxes?</a></li>
<li><a href="#charitable donations cash deduction calculator">Charitable donations cash deduction calculator</a></li>
<li><a href="#when is the cutoff for tax break donations">When is the cut-off for tax break donations?</a></li>
<li><a href="#carry forwards">Carry forwards</a></li>
<li><a href="#what else can you claim on your tax return">What else can you claim on your tax return?</a></li>
<li><a href="#when is the tax deadline for the tax year">When is the tax deadline for the 2020 tax year</a></li>
<li><a href="#how can spiral help with your financial goals">How can Spiral help with your financial goals?</a></li>
<li><a href="#key takeaways">Key takeaways</a></li>
</ul>
&nbsp;
<a href="https://www.spiral.us/blog/what-is-a-charity-a-guide-to-giving/">Getting involved in charity</a> is arguably one of the noblest human character traits. Life is also about the give and take.
So while you give your money to charity, what do you take from the act?&nbsp;Is it only about getting tax break for donations or is it more than a return?
According to the statistics of a study conducted by the <a href="https://www.taxpolicycenter.org/" target="_blank" rel="noreferrer noopener">Tax Policy Center</a>, <a href="https://www.taxpolicycenter.org/briefing-book/what-are-itemized-deductions-and-who-claims-them#:~:text=In%20recent%20years%2C%20about%2030,and%20medical%20and%20dental%20expenses." target="_blank" rel="noreferrer noopener">only about 30% of taxpayers itemized for deduction in 2018</a>; this figure decreased in subsequent years which correlates to the increase in taxpayers claiming standard deductions.&nbsp;
Most taxpayers have decided to settle for only the standard deduction. This may not be unconnected to the fact that itemizers of charitable donations have to provide evidence of such donation and being a voluntary act, donors may not feel the importance of keeping the receipts.&nbsp;
Also, the extra paperwork that needs to be completed before claiming itemized deductions and more recently due to changes made to the tax code that eliminated a number of deductions and raised the standard deduction, itemization became impractical.&nbsp;
Another study published by the Tax policy center also showed that <a href="https://www.taxpolicycenter.org/briefing-book/what-are-itemized-deductions-and-who-claims-them#:~:text=In%20recent%20years%2C%20about%2030,and%20medical%20and%20dental%20expenses." target="_blank" rel="noreferrer noopener">about 93% of all itemized deductions in the 2018 filing year comprised income earners above $500,000</a>.&nbsp;
This does not necessarily mean the lower-income earners are not eligible for such deductions.
The increase in standard deduction and removal of some deductibles has drastically reduced the number of people filing for itemized deduction.&nbsp;
Let&rsquo;s dive deeper.
<h2>What is the importance of charity?</h2>
<a href="https://www.spiral.us/blog/what-is-the-importance-of-charity/">Giving to charity has significant importance</a> that is not limited to tax breaks. It is beneficial to give to charity because of the:
<ul>
<li>Civic responsibility</li>
<li>Community responsibility</li>
<li>Personal fulfillment</li>
</ul>
Again, giving is a personal decision, but while you have the intention and the capacity to give, some organizations have the structure, the reach, and platform to help put your charitable donations to better use.&nbsp;
These organizations are mostly set up to identify the entities that need the funds the most and distribute them accordingly.&nbsp;
Those assets you no longer need and are just taking up space in your house; some charitable organizations are in need of those assets or have identified people in need of them.&nbsp;
So long they are not useless. So instead of just allowing those assets to rot away, you can arrange them and donate to a qualified charity that will either put them to better use or sell off to raise funds for charity.&nbsp;
You are entitled to keep the evidence of the value ascribed to such assets and use as evidence while filing your Schedule A for Itemized deductions.&nbsp;
In a case where the value of such assets exceeds your standard deduction, you kill two birds with one stone; get rid of unwanted properties and, at the same time, get some tax relief&nbsp; in the process. Why not give to charity?
<h2>Do you get a tax break for donating to charity?</h2>
Yes, but not in all cases. Some specific rules and guidelines need to be followed to ensure you qualify for the tax break. Some of these rules include:
<ul>
<li>Your cash donations on Schedule A must not exceed 60% of your adjusted gross earnings.</li>
</ul>
<ul>
<li>Your donations must be paid to a charitable organization.
<ul>
<li>Find out which charitable organizations qualify for tax deductions by accessing their status on <a href="https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations" target="_blank" rel="noreferrer noopener">IRS&rsquo;s Form 501(c)(3)</a>.</li>
</ul>
</li>
</ul>
<ul>
<li>Your donations must be made within the taxable year for which you are filing.</li>
</ul>
<ul>
<li>Receipts and evidence of donations must be well documented.</li>
</ul>
<h2>How to get a tax break for donations (Consult your tax advisor)</h2>
Money and goods donated to <a href="https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations" target="_blank" rel="noreferrer noopener">qualified charitable organizations</a> are eligible for a tax deduction of up to about 60% of your adjusted gross income according to the Jobs Act, P.L.&nbsp;115-97.&nbsp;
However, some steps are required in order to claim the itemized tax deductions.
<ol>
<li>Complete your Schedule A using evidence of money donated/spent: you must keep proof of donations or money spent while doing charity work. In most cases, this will be donation receipts. You will also want to track&nbsp; the actual value of goods donated and the conditions in which they were donated.</li>
</ol>
<ol start="2">
<li>Ensure your donations are directed to <a href="https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations" target="_blank" rel="noreferrer noopener">501(c)(3)</a> designated organizations.</li>
</ol>
<ol start="3">
<li>Familiarize yourself with annual deduction limitations and how to carry forward the deduction if it exceeds the annual limitation.</li>
</ol>
<ol start="4">
<li>Ensure your total calculated itemized deduction exceeds the standard deduction; you can check the <a href="https://www.irs.gov/instructions/i1040sca" target="_blank" rel="noreferrer noopener">IRS&rsquo;s latest guidelines on itemizing your tax deductions</a>.</li>
</ol>
<ol start="5">
<li>Maintain proper documentation of charitable donations, including receipts, value of properties and goods, and the charities to which these items are donated.</li>
</ol>
<ol start="6">
<li>Retain written acknowledgment of donations from the charity and other <a href="https://www.irs.gov/pub/irs-pdf/p1771.pdf">requirements from the IRS</a>.</li>
</ol>
<ol start="7">
<li>Lastly, you might consider engaging a tax professional to help guide you through the process.</li>
</ol>
<h2>How much can you claim in charitable donations without receipts?</h2>
According to the <a href="https://home.treasury.gov/policy-issues/cares/state-and-local-governments" target="_blank" rel="noreferrer noopener">CARES act</a> enacted in March 2020, you can get $300 tax relief for individuals and $600 for married couples from your charitable giving without receipts.&nbsp;
To take the burden of keeping these records off you, and ask your bank about&nbsp; <a href="https://www.spiral.us/">Spiral&rsquo;s Giving Center </a>where you can track donations for tax returns. The Giving&nbsp;Center tracks all your donations so you can easily see who you&rsquo;ve given to, and how much.
<h2>Do you get a tax write-off for donating?</h2>
Generally, you are entitled to up to a 60% deduction from your AGI. However, the recent <a href="https://home.treasury.gov/policy-issues/cares/state-and-local-governments" target="_blank" rel="noreferrer noopener">CARES act</a> legislation has made it possible to claim up to 100% of adjusted gross income (cash donation to qualified organizations), available only till the end of 2021, you may also be limited to 20, 30, or 50% of your AGI, depending on the organization and the type of contribution.&nbsp;
For context, if you donate up to 60% of your AGI to a charitable organization not qualified by the IRS under section 501(c)(3) of the Internal Revenue Code, you are not entitled to any tax deductions for such charitable donations.&nbsp;
You are expected to do your due diligence to be on the safe side of the law if you intend to itemize for deductions later. You also need to identify the organization&rsquo;s tax deduction limit.&nbsp;
For qualified organizations, the tax deduction limit is 60%; for private foundations, the tax deduction limit is pegged at 30%.
<h2>How much do charitable donations reduce taxes?</h2>
As stated above, <a href="https://www.spiral.us/blog/how-much-charity-is-tax-deductible/">how much charity is tax deductible</a> depends on your circumstances, but generally you can get tax relief on up to 100% of adjusted gross income (AGI) in 2021 and 60% of AGI according to the normal rules effective before and after the pandemic.&nbsp;&nbsp;
This means you will only be taxed on the remaining 40% of your AGI if you give up to 60% of your AGI to charity.
This figure may be higher or lower, depending on the donation medium and the organization.
<h2>Charitable donations cash tax deduction calculator</h2>
Calculating your tax deduction can be straightforward when you donate only cash. However, it&rsquo;s more complicated when you donate other assets.
Here are some steps you need to follow in order to calculate your total charitable contributions tax deduction:
<ol>
<li>Total all of your cash donations throughout the year; remember to keep receipts and invoices as evidence of such donations. In the case of electronic cash donations, download or have a screenshot of the evidence for future use.</li>
</ol>
<ol start="2">
<li>Calculate the estimated value of the properties donated within the year. You are required to understand and complete the requirements outlined in IRS <a href="https://www.irs.gov/forms-pubs/about-form-8283" target="_blank" rel="noreferrer noopener">Form 8283</a>, Noncash Charitable Contributions,&nbsp; for property donations above $500. A complication involved in tracking property donations includes determining an agreeable value to the IRS. Getting a fair market value does not work in all situations. For example, properties with minor wear and tears should be valued at the conditions in which they were donated, not the normal market value of similar properties. In cases where the value of such property cannot be predetermined, the value at which the charitable organization sells the property should be used. In such cases where those properties are not sold, a written estimated value of such property should be obtained from the charitable organization.</li>
</ol>
<ol start="3">
<li>Enter the value of the cash donations and property donations separately on your Schedule A after which you will sum the two together to obtain a total donations figure.</li>
</ol>
<ol start="4">
<li>Review your figures and determine whether&nbsp;any additional actions or forms are required.&nbsp;</li>
</ol>
<h2>When is the cut-off for tax break donations?</h2>
All donations made to recognized charitable organizations within a particular year are potentially eligible for tax deductions for that year. Say you made a donation on January 1, 2020, and another on December 31, 2020, both donations are deductible in the 2020 tax return.&nbsp;
However, in cases where the total donations made in that year exceeds 100% of your adjusted gross income (AGI) in 2020 and 2021 and 60% in subsequent years (provided the legislation is unchanged), you should carry forward the excess charitable contribution deduction to the following year.
<h2>Carry forwards</h2>
Excess charitable contribution deductions from the previous year can be entered into the following year&rsquo;s tax return.
Such excess donations are eligible to be carried forward for not more than five years.&nbsp;
For example, if you made a total of $65,000 donations to recognized charitable organizations in 2020 and your AGI is $100,000, you are eligible to file for the full amount donated in your Schedule A in 2020 and 2021, however, after this year, your tax deduction will be limited to $60,000, and $5,000 is carried forward.
<h2>What else can you claim on your tax return?</h2>
There are numerous other benefits, in addition to charitable contribution deductions, <a href="https://www.spiral.us/blog/55-things-you-can-claim-on-your-tax-return/">that you can claim on your tax return</a>.&nbsp;
These include but are not limited to: student loan interest deduction, adoption credit, home office deduction, education expenses deduction, saver&rsquo;s credit, etc.
<h2>When is the tax deadline for the 2020 tax year?</h2>
On March 17, 2021, the Department of Treasury Internal Revenue Service extended the individual income tax filing deadline until May 21, 2021, instead of the regular April 15th deadline.&nbsp;
This gives enough time to get the paperwork. Individual taxpayers who are due for a refund are expected to file immediately.
However, tax payments due April 15th are expected to be paid before the deadline to avoid penalties and interest.
<h2>How can Spiral help with your financial goals?</h2>
<a href="https://spiral.us">Spiral is the pioneer of the Impact-as-a-Service&trade;</a> platform that helps banks and financial institutions easily embed sustainability, social impact, ESG, and CSR into their businesses. Their mission is to empower 10,000+ U.S. financial institutions and millions of people to contribute to a better world.
<h2>Key takeaways</h2>
<ol>
<li>You are eligible for tax deductions (depending on the amount) for donating to qualified charitable organizations</li>
<li>You can donate any valuable you deem useful</li>
<li>Keep a record of all donations and evidence of the calculated fair value of property donations for filing</li>
<li>Know the qualification status of the organization you are donating to</li>
<li>Individual filers are eligible for up to $300 in tax deductions for charitable donations in 2020 without having to itemize your donations</li>
<li>You can carry forward excess donations that exceed the maximum tax-deductible donations of the organizations you donate to</li>
<li>You are expected to have filed your income tax for the 2020 financial year before May 21, 2021</li>
</ol>

Some amendments have been made to the tax law in response to the pandemic; how do you get a tax break when you donate to charity in 2020 and 2021. Here is all you need to know.


How To Get Tax Breaks For Donations

Why should you support your favorite charity and what are the best charities to donate to? Tips on getting started selecting the organizations you want to support.


The Best Charities To Donate To

What&rsquo;s ahead:
<ul class="is-style-none has-small-font-size">
<li><a href="#you didnt file your tax returns for or">You Didn&rsquo;t File Your Tax Returns for 2019 or 2020</a></li>
<li><a href="#you changed your bank account">You Changed Your Bank Account</a></li>
<li><a href="#you recently moved">You Recently Moved</a></li>
<li><a href="#you made too much money last year">You Made Too Much Money Last Year</a></li>
</ul>
Tips Section:
<ul class="is-style-none has-small-font-size">
<li><a href="#what do i do if i have not received my stimulus check">What Do I Do If I Have Not Received My Stimulus Check?</a></li>
<li><a href="#the irs get my payment tool says need more information what does that mean">The IRS Get My Payment Tool Says &ldquo;Need More Information.&rdquo; What Does That Mean?</a></li>
<li><a href="#who do i contact if i havent received my stimulus check">Who Do I Contact If I Haven&rsquo;t Received My Stimulus Check?</a></li>
<li><a href="#how do i contact the irs about my stimulus check">How Do I Contact the IRS About My Stimulus Check?</a></li>
<li><a href="#do i have to claim my stimulus check on my taxes">Do I Have to Claim My Stimulus Check on My Taxes?</a></li>
<li><a href="#i think i got paid too much will i have to return my stimulus payment">I Think I Got Paid Too Much. Will I Have to Return My Stimulus Payment?</a></li>
</ul>
<h2>The 4 Reasons</h2>
<a href="https://www.spiral.us/blog/11-things-to-know-about-the-stimulus-check-round-3/">The third round of economic impact payments</a> (also known as &ldquo;stimulus checks&rdquo;) have now been approved and issued to millions of eagerly waiting Americans.
However, many people have found that their checks have yet to arrive, leaving them wondering, &ldquo;Why have I not received my stimulus check?&rdquo;&nbsp;
We&rsquo;ve compiled 5 possible reasons why you may not have received your stimulus check, along with some helpful tips to ensure that your check makes it into your bank account as quickly as possible.&nbsp;
<h3>#1: You Didn&rsquo;t File Your Tax Returns for 2019 or 2020</h3>
The IRS is using 2019 and 2020 tax returns to determine how much of the stimulus payment you are entitled to.
If you didn&rsquo;t file a tax return for either of these years, the IRS cannot issue your check without accurate information.
To fix this situation, simply file a 2020 tax return as quickly as possible, the IRS <a href="https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline" target="_blank" rel="noreferrer noopener">has currently extended</a> the deadline for filing to May 17th, 2021.&nbsp;
<h3>#2: You Changed Your Bank Account</h3>
The IRS is currently issuing direct-deposit checks straight to the bank accounts of people who opted for direct-deposit of their income tax returns in 2019 or 2020.
If you closed the bank account that you received direct deposits from previously, the IRS will have to wait until the deposit is returned by the bank before issuing you a paper check, which can take some time.&nbsp;
<h3>#3: You Recently Moved</h3>
Similar to changing your bank account, if you don&rsquo;t have a direct deposit bank account on file with the IRS, they will choose to send you a paper check to the address listed on your most recent tax return.
Unfortunately, if you have moved to a new address than the one listed on your tax return, your check may have been mailed to your previous address instead of your current one.&nbsp;
<h3>#4: You Made Too Much Money Last Year</h3>
As we said previously, the IRS uses your most recent tax return on file to determine your eligibility for an economic impact payment.
For single-filers, payment amounts start to decrease if you made over $75,000 on your last tax return, with the payment completely disappearing if you make $80,000 or above.
For married people filing jointly, you will not receive a stimulus payment if your collective income is $160,000 or above, and for &ldquo;head of household&rdquo; filing separately, $120,000 is the cutoff for receiving any benefits.
You can calculate your expected stimulus check amount by using this <a href="https://www.forbes.com/advisor/personal-finance/updated-third-stimulus-check-calculator/" target="_blank" rel="noreferrer noopener">handy calculator</a>.&nbsp;
No matter what the reason, you deserve to know what&rsquo;s going on with your stimulus check, and you may be struggling to find out where it is or what&rsquo;s happened to it.
Here are some handy tips to help you find out where your stimulus check is.&nbsp;
<h2>What Do I Do If I Have Not Received My Stimulus Check?</h2>
<blockquote class="wp-block-coblocks-click-to-tweet">
If you have not received your stimulus check, the first thing you should do is track its status at the IRS.
<a class="wp-block-coblocks-click-to-tweet__twitter-btn" href="http://twitter.com/share?&amp;text=If%20you%20have%20not%20received%20your%20stimulus%20check%2C%20the%20first%20thing%20you%20should%20do%20is%20track%20its%20status%20at%20the%20IRS.&amp;url=https%3A%2F%2Fblogspiralus.wpcomstaging.com%2F2021%2F05%2F12%2F4-reasons-why-you-may-not-have-received-your-stimulus-check%2F" target="_blank" rel="noopener noreferrer">Tweet</a></blockquote>
<h2>How to Track My Stimulus Check:</h2>
<ol>
<li>Go to the IRS <a href="https://sa.www4.irs.gov/irfof-wmsp/notice%3Bjsessionid=AarvpEPtKkaNbm8BV5Iq1uPr.3d" target="_blank" rel="noreferrer noopener">&ldquo;Get My Payment&rdquo;</a> portal</li>
<li>Enter your required personal information into the form provided</li>
<li>Hit &ldquo;Continue&rdquo;</li>
<li>A page will appear entitled &ldquo;Payment Status&rdquo; which should give you any information the IRS has on the status of your payment</li>
</ol>
<h2>The IRS Get My Payment Tool Says &ldquo;Need More Information.&rdquo; What Does That Mean?</h2>
<a href="https://www.irs.gov/coronavirus/get-my-payment-frequently-asked-questions#myaddress" target="_blank" rel="noreferrer noopener">According to the IRS</a>, &ldquo;if you are seeing &ldquo;Need More Information&rdquo; in the Get My Payment tool, it is because:
#1: Your 2020 return was processed and we don&rsquo;t have bank account information for you and your payment has not been issued yet.
or
#2: The Post Office was unable to deliver your third Economic Impact Payment and returned it to the IRS.&rdquo;
This can be easily fixed by updating your bank account or home address on file with the IRS, which you can do <a href="https://www.irs.gov/taxtopics/tc157" target="_blank" rel="noreferrer noopener">here</a>.&nbsp;
<h2>Who Do I Contact If I Haven&rsquo;t Received My Stimulus Check?</h2>
If you are still unable to locate your stimulus check, it&rsquo;s time to contact the IRS directly.&nbsp;
<h2>How Do I Contact the IRS About My Stimulus Check?</h2>
You can call the IRS&rsquo;s main customer service number at 800-829-1040 to be directed to the correct department, or you can reach out directly to the department dealing with missing or incorrect stimulus payments at 800-919-9835.
<h2>Do I Have to Claim My Stimulus Check on My Taxes?&nbsp;</h2>
If you received your stimulus payment as expected, <a href="https://www.spiral.us/blog/if-i-owe-taxes-will-i-get-a-stimulus-check/">you do not have to include it in your tax filings</a>.
However, if you are missing one or more stimulus payments, a new feature implemented by the IRS allows you to claim unpaid stimulus amounts on your next tax return.
This feature is known as the <a href="https://www.irs.gov/newsroom/recovery-rebate-credit" target="_blank" rel="noreferrer noopener">Recovery Rebate Credit</a> and allows you to claim any missing amount from your first or second economic impact payments.&nbsp;
While this doesn&rsquo;t currently extend to the third payments that may be missing, there is a good chance this program will be enacted for third payments in the future.
However, if you are missing money from either your first or second stimulus checks, go ahead and claim these now using <a href="https://www.forbes.com/advisor/taxes/how-to-use-the-recovery-rebate-credit-to-claim-your-missing-stimulus-payment/" target="_blank" rel="noreferrer noopener">these simple steps</a>.&nbsp;&nbsp;
<h2>I Think I Got Paid Too Much. Will I Have to Return My Stimulus Payment?</h2>
The answer is: it depends. If you made more than the cutoff amount on both your 2019 and 2020 tax filings and still received a stimulus check, the IRS will likely ask you to return all or most of the payment.
However, if you received a stimulus payment based on your 2019 taxes prior to filing your 2020 taxes, you won&rsquo;t be expected to pay back any money if you made more in 2020 than in 2019.&nbsp;
You can find a link to the specific circumstances in which the IRS will and won&rsquo;t seek repayment <a href="https://www.cnet.com/personal-finance/sorry-you-might-have-to-return-your-stimulus-payment-to-the-irs-heres-why-and-how/" target="_blank" rel="noreferrer noopener">here</a>.&nbsp;
&hellip;
Not receiving a stimulus check can be incredibly frustrating, but by following these tips and practicing some deep breathing (or possibly indulging in a pint or two of rocky road), hopefully you can track down what happened to yours and finally receive the payments you&rsquo;re entitled to.&nbsp;

We’ve compiled 5 possible reasons why you may not have received your stimulus check, along with some helpful tips to ensure that your check makes it into your bank account as quickly as possible.


4 Reasons Why You May Not Have Received Your Stimulus Check

This article was fact-checked and verified by <a href="https://www.linkedin.com/in/katherinevarraveto985649161" target="_blank" rel="noreferrer noopener">Katherine Varraveto</a>, CPA. However, this article does not constitute tax advice and was written for educational purposes. For actual tax advice please consult your own CPA.
<ul class="is-style-none">
<li><a href="#how much charity is tax deductible">How much charity is tax deductible?</a></li>
<li><a href="#what is considered a charitable donation">What is considered a charitable donation?</a></li>
<li><a href="#what is the maximum tax deduction">What is the maximum tax deduction?</a></li>
<li><a href="#what is the maximum charitable deduction in without a receipt">What is the maximum charitable deduction in 2020 without a receipt?</a></li>
<li><a href="#is the charitable deduction per person">Is the $300 charitable deduction per person?</a></li>
<li><a href="#how much do i need to give to charity in order to impact my tax return">How much do I need to give to charity in order to impact my tax return?</a></li>
<li><a href="#how much can i claim for charitable donations without getting audited">How much can I claim for charitable donations without getting audited?</a></li>
<li><a href="#things to remember about tax deductible donations">5 Things to remember about tax deductible donations</a></li>
<li><a href="#how can spiral help you with your charitable goals">How can Spiral help you with your charitable goals?</a></li>
<li><a href="#key takeaways">Key takeaways</a></li>
</ul>
Many of us want to use our resources to help non-profit organizations. Is there a limit on the total <a href="https://www.spiral.us/blog/how-to-get-tax-breaks-for-donations/">charitable donations each person can claim as a tax deduction</a>? How should I decide if and how much should I donate? How much charity is tax deductible?
Currently, there is not a limit on qualified donations made to public charities. In prior years, limits can vary from 30% to 60% of your adjusted gross income.
We don&rsquo;t know what policies the next few years will bring, but it is a good time to get the most out of your charitable giving and maximize your tax benefits.
Before we get started, what is a tax deduction?
<a href="https://www.bankrate.com/glossary/t/tax-deduction/" target="_blank" rel="noreferrer noopener">According to Bankrate,</a> &ldquo;A tax deduction reduces the amount of income that is subject to taxation by federal and state governments. All federal income taxpayers have the right to choose either the standard deduction or to itemize a range of deductions, thereby lowering their taxable income.&rdquo;&nbsp;
If an item is considered &ldquo;tax-deductible,&rdquo; it means that it can be taken as a tax deduction. Okay, now let&rsquo;s talk deduction limits.&nbsp;
<h2>How much charity is tax deductible?</h2>
Note: These are limits for 2020 and 2021 under COVID-era policies. These numbers could change in 2022. Please check with your tax advisor before making decisions on your plans for deductions.
<a href="https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions#:~:text=You%20may%20deduct%20charitable%20contributions,limitations%20apply%20in%20some%20cases" target="_blank" rel="noreferrer noopener">According to the Internal Revenue Service</a> (IRS), &ldquo;In most cases, the amount of charitable cash contributions taxpayers can deduct on Schedule A as an itemized deduction is limited to a percentage (usually 60 percent) of the taxpayer&rsquo;s adjusted gross income (AGI).&nbsp;
Qualified cash contributions, created by the CARES Act of 2020, are not subject to this limitation.
Individuals may deduct qualified cash contributions of up to 100 percent of their adjusted gross income. Please note that currently qualified contributions are only authorized for 2020 and 2021. Contributions that exceed the limitations can be carried over to the next tax year.
To qualify for deduction, the contribution must be:&nbsp;
<ul>
<li>a cash contribution;</li>
<li>made to a qualifying organization</li>
<li>made during the calendar year 2020 or 2021</li>
</ul>
In short, &ldquo;When you make a charitable contribution of cash to a qualifying public charity, in 2020 or 2021, under the Consolidated Appropriations Act, you can deduct up to 100% of your adjusted gross income,&rdquo; according to <a href="https://www.fidelitycharitable.org/guidance/charitable-tax-strategies/charitable-tax-deductions.html" target="_blank" rel="noreferrer noopener">Fidelity Charitable</a>.&nbsp;
<div class="wp-block-image">
<figure class="aligncenter"><img src="https://lh6.googleusercontent.com/s9ja8hU22wTrIzp-69LIGxcBJYhDzuOh8DNouPEzDsM-YPeexCXx_75ub7VWghm-2G7RKBS0N_iBF7xXpZWyUj5H6xCKLJrmjvmvCWbJfHnDaL5HWwvCwBzS3OqnCNp8wzN7mJHv" alt="How Much Charity Is Tax-Deductible? ">
<figcaption class="wp-element-caption">Image from <a href="https://images.wsj.net/im-320540?width=620&amp;size=1.5005861664712778" target="_blank" rel="noreferrer noopener">Source: WSJ</a></figcaption>
</figure>
</div>
<h2>What is considered a charitable donation?</h2>
According to the IRS, a charitable donation is &ldquo;a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value.&rdquo;
Practically, this could be a monetary donation or even a physical item. An example of a physical item would be donating your used car to an organization like <a href="https://www.habitat.org/support/donate-your-car" target="_blank" rel="noreferrer noopener">Habitat for Humanity</a>.
<h2>What is the maximum tax deduction?</h2>
Charitable giving isn&rsquo;t the only way you can get a tax deduction! Even with the 50% charitable donation limit, you cannot go above having 60% of your AGI itemized in deductions.
This means that any other deductions you have plus your charitable donations, can&rsquo;t exceed 60% of your reported income.&nbsp;
So, if you, in our metaphorical example, made $50,000 and donated $25,000 to your local public charity and had write-offs (such as mortgage interest, state and local tax, and healthcare expenses) totaling over $10,000, you&rsquo;d only be able to claim a total of $30,000 in itemized deductions. <a href="https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions#:~:text=You%20may%20deduct%20charitable%20contributions,limitations%20apply%20in%20some%20cases" target="_blank" rel="noreferrer noopener">See this article from the IRS for more information</a>.
You may not even need to itemize your tax deductions because the IRS gives you the opportunity to claim a standard deduction.
<a href="https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2020#:~:text=For%20single%20taxpayers%20and%20married,tax%20year%202020%2C%20up%20%24300." target="_blank" rel="noreferrer noopener">From the IRS:</a> &ldquo;The standard deduction for married filing jointly rises to $24,800 for tax year 2020, up $400 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $12,400 in for 2020, up $200, and for heads of households, the standard deduction will be $18,650 for tax year 2020, up $300.&rdquo;&nbsp;
In comparison, an itemized deduction is a list of eligible deductions that you, as the taxpayer, can list out on your tax return. If you believe you have more than the standard deduction, it would make more sense to itemize.&nbsp;
<a href="https://www.investopedia.com/terms/s/standarddeduction.asp" target="_blank" rel="noreferrer noopener">According to Investopedia</a>, a standard deduction, &ldquo;is the portion of income not subject to tax that can be used to reduce your tax bill.
The IRS allows you to take the standard deduction if you do not itemize your deductions using Schedule A of Form 1040 to calculate taxable income.&rdquo;
This will change for 2021:&nbsp;
<figure class="wp-block-image"><img src="https://lh3.googleusercontent.com/PpUVrO3TW5-fZf40_t0KV_KEcUe78Nnez6dUM59c4RPG_zvrEFrWcgZeO9Qznas7pjGWaeQp5jl7tsBPVnsx-EEC3XEtqPL3-foiIHDUMMgrsXBTY6hzSJERNLxeZgZsqjJteAh3" alt="How Much Charity Is Tax-Deductible? "></figure>
<h2>What is the maximum charitable deduction in 2020 without a receipt?</h2>
<a href="https://www.nerdwallet.com/article/taxes/tax-deductible-donations-charity" target="_blank" rel="noreferrer noopener">According to NerdWallet</a>, &ldquo;For the 2020 tax year, there&rsquo;s a twist: you can deduct up to $300 of cash donations without having to itemize. This is called an &ldquo;above the line&rdquo; deduction.
In 2021, the deduction rises to $300 per person rather than per tax return, meaning a married couple filing jointly could deduct up to $600 of donations without having to itemize.&rdquo;
This means that you can, regardless of whether you itemize or take the standard deduction, also claim the $300 in cash donations.
<h2>Is the $300 charitable deduction per person?</h2>
Yes, $300 is per person, meaning, if married and filing jointly, you could claim up to $600 of cash donations, even if also taking the standard deduction, without having to itemize the giving.
<h2>How much do I need to give to charity in order to impact my tax return?</h2>
Of course, you can&rsquo;t put a true financial value on all of the <a href="https://www.spiral.us/blog/what-is-the-importance-of-charity/">reasons to make a charitable donation </a>but in order for your donations to impact your tax return, you&rsquo;d have to have more donations and other deductions than the standard deduction outlined above (so $12,550 for single filers and $25,100 for married, filing jointly taxpayers in 2021).&nbsp;
Going back to our prior example, if you are filing a single tax return, your total deductions (including charitable and all others), would need to total more than the $12,400 you can claim as a standard deduction.
If you have only donated $400 and are able to claim just $3,500 in mortgage interest and other deductions, for example, you would be better off taking the offered $12,400 in standard deduction <a href="https://www.spiral.us/blog/how-to-get-tax-breaks-for-donations/">instead of itemizing your charitable giving</a>.&nbsp;
<div class="wp-block-image">
<figure class="aligncenter"><img src="https://lh4.googleusercontent.com/qAb1n0r4GU4iIwul9qBNiouA8QojN2iQ4ot1_RVL3dNcNKhlKNiGOPEoVPIZbjKKjTc8KcHUqYbvJCvIWKyD47QsniBXQZ1krzTUcWYQcsx83mr7xkQTN9sQQihXR0rwM2weS45b" alt="How Much Charity Is Tax-Deductible? ">
<figcaption class="wp-element-caption">Image from <a href="https://www.1040.com/blog/2016/3/1/standard-deduction-or-itemized-deductions/">1040.com</a></figcaption>
</figure>
</div>
<h2>How much can I claim for charitable donations without getting audited?</h2>
There is no magic number here. The IRS can choose to audit you at any time, for any reason. However, <a href="https://budgeting.thenest.com/much-can-donate-charity-raising-red-flag-irs-33916.html" target="_blank" rel="noreferrer noopener">according to The Nest</a>, the IRS is more likely to flag charitable giving that goes above 3% of your AGI.&nbsp;
&ldquo;The IRS knows how much the average taxpayer in your income range donates, and if you want to avoid IRS red flags for charitable donations, it&rsquo;s a good idea to stay within that charitable donations limit range, or the IRS may want to take a closer look at your tax return.&nbsp;
Say your adjusted gross income is $100,000. The average donation for that income level is about $3,620, or around 3 percent.
So if you donate three times that much, make sure you keep any charitable donation receipts, because the IRS may want to check your return.
If you are within that 3-percent range, you most likely can go ahead and claim charitable deductions without a receipt. Still, keeping receipts always makes sense in case the IRS flags your return for another reason.
You are legally allowed to claim charitable deductions for up to 60 percent of your adjusted gross income, but again, if you go much above that 3 percent rate, the IRS will likely audit your return.&rdquo;
<h2>5 Things to remember about tax deductible donations</h2>
<ol class="is-style-checkbox">
<li>Calculate whether or not it will make sense to itemize your deductions.
<ol>
<li>&nbsp;If you were to itemize all of your deductions, would it be less than the standard deduction offered based on your filing status? If so, take the standard deduction. Less paperwork, too!</li>
</ol>
</li>
</ol>
<ol class="is-style-checkbox" start="2">
<li>If you will be itemizing, remember this helpful checklist on how to claim the deductions:&nbsp;
<ol>
<li>Make sure the non-profit organization is a 501(c)(3) public charity or private foundation.</li>
<li>Keep a record of the contribution (usually the tax receipt from the charity).</li>
<li>If it&rsquo;s a non-cash donation, in some instances you must obtain a qualified appraisal to substantiate the value of the deduction you&rsquo;re claiming. You may even need the receipts from the original purchase.</li>
<li>With your paperwork ready, itemize your deductions and file your tax return (<a href="https://www.fidelitycharitable.org/guidance/charitable-tax-strategies/charitable-tax-deductions.html" target="_blank" rel="noreferrer noopener">Fidelity</a>).</li>
</ol>
</li>
</ol>
<ol class="is-style-checkbox" start="3">
<li>If you don&rsquo;t have cash, you can donate items!&nbsp;
<ol>
<li>Instead of throwing away your valuables, see if a local organization will take them. Make sure you get a receipt from them so you can write it off.&nbsp;</li>
</ol>
</li>
</ol>
<ol class="is-style-checkbox" start="4">
<li>Use <a href="https://www.spiral.us/" target="_blank" rel="noreferrer noopener">Spiral&rsquo;s new ethical banking</a>&sup1; service to match up to $150 of your donations per year&sup3;.&nbsp;
<ol>
<li>Make your money go further in helping those in need.</li>
</ol>
</li>
</ol>
<ol class="is-style-checkbox" start="5">
<li>Charitable giving is not only about the deduction.&nbsp;
<ol>
<li>Even if you&rsquo;re just giving small amounts (Start with $1!), you will &ldquo;<a href="https://www.psychologytoday.com/us/blog/the-compass-pleasure/201108/is-your-brain-charitable-giving" target="_blank" rel="noreferrer noopener">feel wealthier, healthier, and happier</a>.&rdquo; According to <a href="https://www.forbes.com/sites/camilomaldonado/2018/07/10/you-should-budget-for-charitable-giving-even-if-not-rich/?sh=2aa8a47c7439" target="_blank" rel="noreferrer noopener">Forbes</a> article, &ldquo;individuals that spent $4 on someone else reported being more happy than those that spent up to $20 on themselves.&rdquo;</li>
</ol>
</li>
</ol>
And when it comes to charitable donations, there is also no magic number for how much you should give.
It comes down to your own savings and budget goals. Find charitable organizations whose mission you support. Here&rsquo;s a fun list of reputable, amazing <a href="https://www.spiral.us/blog/3-amazing-celebrity-founded-nonprofits-to-donate-to/">charities started by celebrities!</a>
<h2>How can Spiral help you with your charitable goals?&nbsp;</h2>
<a href="https://spiral.us">Spiral is the pioneer of the Impact-as-a-Service&trade;</a> platform that helps banks and financial institutions easily embed sustainability, social impact, ESG, and CSR into their businesses. Their mission is to empower 10,000+ U.S. financial institutions and millions of people to contribute to a better world.
<h2>Key takeaways</h2>
So, how much charity is tax deductible? Right now, you can donate 100% of your AGI to qualified, public charities. That might not always be the case! However, if you&rsquo;re like the majority of Americans, you likely will need to weigh whether or not you&rsquo;ll need to itemize your deductions or take the standard deduction.
Finally, remember <a href="https://www.spiral.us/blog/what-is-a-charity-a-guide-to-giving/">what is charity</a> and that giving is not just about your wallet. It&rsquo;s good for your community, your well-being, and the well-being of all of us.
<figure class="wp-block-image"><img src="https://lh3.googleusercontent.com/WR9gLJzemME_CJgsLeMv5nTf-YVLY2CtsNOlPs5ejxKTrBB0knObpBjXDV_OlIZOvPYUhJCJuxsaqALErg4S-RKjLUrrrHatN1dyIgEFJqn7o-Nn-dME9ACjVTXuo3R2u8sdhkof" alt="How Much Charity Is Tax-Deductible? ">
<figcaption class="wp-element-caption">(Image from <a href="https://www.coastalwealthmanagement24.com/wp-content/uploads/2018/03/The-Standard-Deduction-and-Itemized-Deductions-After-Tax-Reform-Coastal-Wealth-Management.gif"> Coastal Wealth Management</a>)</figcaption>
</figure>

Preparing your charitable giving plans? 5 things to remember about tax deductible donations.


How Much Charity Is Tax-Deductible?

This article was fact-checked and verified by <a href="https://www.linkedin.com/in/katherinevarraveto985649161" target="_blank" rel="noreferrer noopener">Katherine Varraveto</a>, CPA. However, this article does not constitute tax advice and was written for educational purposes. For actual tax advice please consult your own CPA.
<ul class="is-style-none">
<li><a href="#what is a tax break">What is a tax break?</a></li>
<li><a href="#who gets a tax break">Who gets a tax break?</a></li>
<li><a href="#do all businesses get tax breaks for donations">Do all businesses get tax breaks for donations?</a></li>
<li><a href="#what type of business do you run">What type of business do you run?</a></li>
<li><a href="#are donations taxdeductible for companies">Are donations tax-deductible for companies?</a></li>
<li><a href="#how much does a charitable donation reduce taxes">How much does a charitable donation reduce taxes?</a></li>
<li><a href="#donating a percentage of your profits to charity">Donating a percentage of your profits to charity</a></li>
<li><a href="#can an llc write off charitable donations">Can an LLC write off charitable donations?</a></li>
<li><a href="#can businesses deduct donated services">Can businesses deduct donated services?</a></li>
<li><a href="#how do i know if my donation is deductible">How do I know if my donation is deductible?</a></li>
<li><a href="#what if i get audited and i dont have receipts">What if I get audited, and I don&rsquo;t have receipts?</a></li>
<li><a href="#summary">Summary</a></li>
<li><a href="#key takeaways">Key takeaways</a></li>
<li><a href="#how can spiral help with your giving financial goals">How can Spiral help with your giving &amp; financial goals?</a></li>
</ul>
Donating to charity is a noble act, no doubt, and <a href="https://spiral.us/blog/3-amazing-celebrity-founded-nonprofits-to-donate-to/">while giving to charity</a> seems a lot more like a personal decision, it has also been adopted as a business decision with the aim of:
<ol>
<li>Giving back to the community&nbsp;</li>
<li>Making bearable for the people in need</li>
<li>Offering a helping hand during disasters</li>
</ol>
But do all businesses get tax break for their donations? And how can you or your business <a href="https://www.spiral.us/blog/how-to-get-tax-breaks-for-donations/">qualify for a tax break</a>?
While donating is a voluntary act, several rewards are available to donors that encourages them to do more, some of these rewards are actively planned (tax breaks) while others are unplanned and gotten as a result of every charity act.&nbsp;
Although not necessarily strategic tax moves, these unplanned donations can also be quite valuable to a business.
When both these planned and unplanned rewards are considered, charitable acts such as donating, volunteering etc., comes with the following benefits.&nbsp;
<ul>
<li>Increased social responsibilities: When you give to charity, through different means, either through cash donations, volunteering or product donations, you give your business a socially responsible business status;</li>
<li>A means of giving back to the local community: Giving back to the community in which you make your money is always a good idea. It sends a message of support that you are not only serving them via your business but also supporting the community&rsquo;s more specific needs.</li>
<li>A way of rewarding customers for their loyalty: Some customers are very loyal to whatever brand they choose, these customers deserve to be rewarded for their loyalty by giving back to them or giving to any charity they choose, this helps to rejuvenate their loyalty towards your brand.</li>
<li>A unique means of free but effective company advertisement: Doing charity works gives your business a particular type of publicity that paid advertising does not &ndash; and this added publicity comes as a byproduct to the donation! When customers or potential customers see your charitable work, some may automatically develop an emotional attachment to your brand, the loyalty is deepened if the donation goes to a charity they are passionate about.</li>
<li>Tax breaks for donations: As a business, when you donate to charity and you itemize your contributions, you are eligible for <a href="https://www.spiral.us/blog/how-to-get-tax-breaks-for-donations/">varying levels of tax deductions</a>, depending on the type of company you have. A reduced tax burden is always a welcome idea.</li>
</ul>
<h2>What is a tax break?</h2>
Let&rsquo;s say; a Sole Proprietorship business makes a donation which is of the same value as 10% of the company profit to a qualified charity.&nbsp;
The company owner, who gets the profit or incurs the losses from the business is eligible to complete Schedule A, for a tax break equivalent to the amount donated. This here, is a tax break.
<h2>Who gets a tax break?</h2>
Sole proprietors, partners in a partnership, or shareholders in an S-corporation may be able to deduct charitable contributions made by their business on Schedule A (Form 1040).&nbsp;
Corporations (other than S-corporations) can deduct charitable contributions on their income tax returns, subject to limitations.
<h2>Do all businesses get tax breaks for donations?</h2>
Yes, but the tax break received depends on facts and circumstances. Cases are different; here&rsquo;s why: as a business entity, you are eligible for tax deductions at varying levels, depending on the type of cooperation (Sole Proprietorship, Partnership, Corporation, or an LLC) you run and provided you meet some other criteria spelt out by the IRS.
These criteria include but not limited to; donating to a qualified charity, the amount donated and the time of donation.
<h2>What type of business do you run?</h2>
There are different types of businesses, and they each qualify for varying levels and types of tax deductions.
<ul>
<li>Sole proprietorship: An individual solely owns this type of business. The tax liability is the responsibility of the sole owner to settle as he/she receives all the profits or losses from the business.</li>
<li>Partnership: a collaboration between two or more business partners; here, the multiple owners, rather than the business directly, are taxed on the profits or losses they receive from the business.</li>
<li>Corporation: also called C Corporation, is a type of business wholly separate from its owners; the company can be taxed or held legally responsible separate from its owner(s).</li>
<li>S Corporation: S corporations elect to pass business attributes such as losses, income, tax, and credit to the shareholders. The flow of income is reported on the individual tax returns. What qualifies a business as an S Corporation? <a href="https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations">See here. </a></li>
<li>Limited Liability Company (LLC): In an LLC, baring a situation where the owners asks the company is treated as a corporation for tax purposes,&nbsp; the owners are not liable for the company&rsquo;s debts or liabilities; however, their profits and losses are passed on to the owners and are taxed from there. LLCs basically combine the characteristics of sole proprietorship and partnership while operating as a corporation.&nbsp;</li>
</ul>
From the above, you can assess your type of business and the type of taxation of your business. After this, let&rsquo;s talk about the level of tax deductions due to the different kinds of business.
<h2>Are donations tax-deductible for companies?</h2>
Companies can get donation rebates for their cash donations that exceed the standard deduction up to 30%, these figures may fall to 20%, 15% and 10%, depending on the type of corporation and the amount donated. Provided the donations are made to qualified charities.
If you run a sole proprietorship or a partnership, you can get a 100% tax deduction from your charitable cash giving as a company in 2020 and 2021; this is because the profits or losses are passed on to you, and the deductions are made from there. This is not the case with non-cash donations or donations from other types of business. Non-cash donations are eligible for a 50% deduction.
<h2>How much does a charitable donation reduce taxes?</h2>
To determine how much your charitable giving reduces your company taxes, you can <a href="https://www.irs.gov/publications/p542" target="_blank" rel="noreferrer noopener">check the IRS guidelines </a>for tax deductions available to your specific type of company.
For a sole proprietorship, since your profits and losses are transferred to you and you are then taxed on your income, you are eligible to deduct on Schedule A up to 100% of cash donations (temporary legislation) or 60%, 30% and 20% of donations, depending on the type of donation or the type of charity receiving the donation.&nbsp;&nbsp;
The same goes for partnerships, S corporation shareholders and LLCs, when the profits and losses are passed on to the owners or shareholders.&nbsp;
It is, however, different in the case of C corporations. The C corporation&rsquo;s earnings are taxed at the business level, and the dividends paid to the shareholders are taxed again at the individual level.&nbsp;
C corporations must file IRS <a href="https://www.irs.gov/pub/irs-pdf/f1120.pdf" target="_blank" rel="noreferrer noopener">Form 1120</a> to report income and losses. C corporations are eligible to claim not more than 10% of their charitable giving as tax deductions.
<h2>Donating a percentage of your profits to charity</h2>
Deciding what percentage of your profits should go to charity is personal. According to a study conducted by <a href="https://www.philanthropy.com/article/most-small-companies-make-charitable-donations-survey-finds/" target="_blank" rel="noreferrer noopener">American Express and The Chronicle of Philanthropy, the average American business donates an average of 6% of its profit to charity</a>.&nbsp;
However, the amount of the tax break depends on the amount given as well as the&nbsp; amount of business income. Setting aside a percentage of your profit will help to organize and document your charitable giving without going through too much stress.
<h2>Can an LLC write off charitable donations?</h2>
LLCs can be taxed in two ways: they are taxed from their shareholders&rsquo; income or are taxed as a corporation; in both cases, they are eligible for charity deduction. If they are taxed as a corporation, their charitable contributions can be deducted separately from other deductions by filing <a href="https://www.irs.gov/pub/irs-pdf/f1120.pdf">IRS form 1120</a>. If an LLC is taxed as a corporation, it can claim up to 10% in charitable tax deductions.
<h2>Can businesses deduct donated services?</h2>
Non-financial donations including properties can be deducted in addition to financial contributions. Services donated, however, are not deductible.&nbsp;
Instead, the expenses incurred in the process of offering such services can be deducted.&nbsp;
Expenditures like gas, materials used, change in machinery parts etc., can be curated for a deduction.&nbsp;
A company that decides to offer its staff the opportunity to volunteer to charities of their choices cannot claim deductions on their hours doing charity work.&nbsp;
Neither can it claim deductions on the amount of revenue lost in the process.&nbsp;
<a href="https://www.spiral.us/blog/55-things-you-can-claim-on-your-tax-return/">What can be claimed</a> are the logistics support offered, money spent on refreshments, materials bought and used for the charity work.&nbsp;
It is vital to obtain a fair market value of each material and receipt or evidence adequately documented.
<h2>How do I know if my donation is deductible?</h2>
After deciding to donate:&nbsp;
<ul>
<li>Ensure the charity you are donating to is qualified under <a href="https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations" target="_blank" rel="noreferrer noopener">IRS Form 501(c)(3)</a>.</li>
<li>Keep receipts and other evidence of your donations.</li>
<li>Obtain a fair market price of non-financial donations.</li>
<li>Itemize your donations on IRS Schedule A.</li>
<li>For property donations above $500, obtain and complete <a href="https://www.irs.gov/forms-pubs/about-form-8283" target="_blank" rel="noreferrer noopener">IRS Form 8283</a>.</li>
</ul>
After going through the above processes, your charitable donations can be qualified for deductions.
<h2>What if I get audited, and I don&rsquo;t have receipts?</h2>
In situations where your receipts are lost, you should obtain a written acknowledgment from the charities to serve as evidence of your donation.
If you&rsquo;re looking for an easy way to track donations for tax returns, try <a href="https://www.spiral.us/">new banking&sup1; services like Spiral</a> that are dedicated to making giving easy for their customers.
Spiral&rsquo;s mobile app tracks all your donations so you can easily see who you&rsquo;ve given to, and how much.
With Spiral, you can give effortlessly to 1 million+ charities&sup2; AND get your donations matched dollar-for-dollar, up to $150 per year&sup3;. Make your giving go further!
<h2>Summary</h2>
Donating to charities has so many levels of impact and value, both to others and yourself. These donations, depending on the status of the receiving charity, can be eligible for a certain level of tax deductions.&nbsp;
And this tax deduction varies from 30% to 10%, depending on the type of corporation the business is. Ensure you keep your receipts or evidence of every donation intact.&nbsp;
<h2>Key takeaways&nbsp;</h2>
<ul>
<li>Depending on the type of business you do, you are entitled to certain levels of tax breaks for your donations.</li>
<li>You can&rsquo;t claim deductions on donated services except on the expenses incurred while offering the services.</li>
<li>LLCs and other company types are eligible for tax deductions, depending on some criteria that have to be fulfilled.</li>
<li>Without receipts, you can obtain written acknowledgements from the charities to serve as proof of your charitable donations: However, it&rsquo;s better to get your receipts and keep them safe for this purpose.</li>
</ul>
<h2>How can Spiral help with your giving &amp; financial goals?&nbsp;</h2>
<a href="https://spiral.us">Spiral is the pioneer of the Impact-as-a-Service&trade;</a> platform that helps banks and financial institutions easily embed sustainability, social impact, ESG, and CSR into their businesses. Their mission is to empower 10,000+ U.S. financial institutions and millions of people to contribute to a better world.

As a business, donating to charity has so many benefits attached to it, which includes tax breaks; here is what you need to know to get tax breaks for your donations


Do All Businesses Get Tax Breaks for Donations?

<ol class="is-style-none">
<li><a href="#stimulus check first round">Stimulus Check First Round</a></li>
<li><a href="#stimulus check second round">Stimulus Check Second Round</a></li>
<li><a href="#stimulus check third round">Stimulus Check Third Round</a></li>
<li><a href="#can i get a stimulus check if i didnt file taxes">Can I Get a Stimulus Check if I Didn&rsquo;t File Taxes?</a></li>
<li><a href="#will i get a stimulus check if i owe taxes for">Will I Get a Stimulus Check if I Owe Taxes for 2019?</a></li>
<li><a href="#recovery rebate tax credit">Recovery Rebate Tax Credit</a></li>
<li><a href="#why have i not received my stimulus check">Why Have I Not Received My Stimulus Check?</a></li>
</ol>
This article was fact-checked and verified by <a href="https://www.linkedin.com/in/katherinevarraveto985649161" target="_blank" rel="noreferrer noopener">Katherine Varraveto</a>, CPA. However, this article does not constitute tax advice and was written for educational purposes. For actual tax advice please consult your own CPA.
If I owe taxes will I get a stimulus check? That is the big question on everyone&rsquo;s mind right now.
2020 has definitely been a tough year financially for many people. Employment rose dramatically at the start of the pandemic and it has since leveled off somewhat.
When unemployment is down, the economy always suffers. Therefore, the U.S. government stepped in to help relieve some of the financial stress from its citizens and the economy by issuing stimulus checks as <a href="https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments" target="_blank" rel="noreferrer noopener">coronavirus tax relief</a>.&nbsp;
The purpose of the stimulus check is to reenergize the economy. The government sends a stimulus check to a taxpayer in hopes that the taxpayer will spend it in a way that will boost the economy.
But for many, this becomes a stressful time, especially for those wondering whether they will receive or qualify for this financial relief since they owe back taxes or have other particular circumstances.
<div class="wp-block-image">
<figure class="aligncenter is-resized"><img src="https://lh4.googleusercontent.com/N1GBrK9iGQI6RZ7I0-7x8KdRX0cD3Hf_mL0iq1if69m9FAvfgpVPQ74QzqBbwJlY-CZipmj4b00Tty75kI8ledXq7HOSMC-SUelIjBjGdoX0Y2akmdmdYyawClpXZQ7wjgVGYIE7" alt="If I Owe Taxes Will I Get A Stimulus Check?" width="720" height="480" loading="lazy">
<figcaption class="wp-element-caption">Image by jewhisperer from <a href="https://pixabay.com/">Pixabay</a></figcaption>
</figure>
</div>
<h2>Stimulus Check First Round</h2>
The first stimulus check was a by-product of the <a href="https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers" target="_blank" rel="noreferrer noopener">CARES Act</a> which went into effect March 27, 2020.
The CARES Act stated that those eligible would receive $1,200 per person, or portion there-of based on phase-out limitations, with an extra $500 per dependent under the age of 17 if your filing status was the following:
<ul>
<li>Single &ndash; adjusted gross income under $99,000 with a phase-out above $75,000</li>
<li>Head of Household &ndash; adjusted gross income is less than $136,500 with a phase-out above $112,500</li>
<li>Married Filing Jointly &ndash; no children and adjusted gross income is below $198,000 with a phase-out above $150,000</li>
</ul>
This check arrived in April of 2020, if at least one spouse had a valid Social Security number and was a U.S. citizen or qualifying resident alien, either as a paper check, an EIP card that required activation, or as a direct deposit and was recorded on IRS Notice 1444-A.
Even those who don&rsquo;t usually file taxes were eligible for the first check. This included railroad retirees, older adults, Social Security recipients including Social Security Disability Insurance, Supplemental Security Insurance recipients, and Veterans Affairs beneficiary.
Eligibility and payment amount were determined by the 2018 or 2019 tax return depending whether the 2019 return was filed before the first round of checks.&nbsp;
<div class="wp-block-image">
<figure class="aligncenter is-resized"><img src="https://lh5.googleusercontent.com/Br9NaEciPai5MeBTgu0R2CDPtG6rASfFyA5zVVGDo71H-Sg9OkPUQDe3aCWocQzLeRsQnF9ZZR215k31ffy-bONroOnfJs2CELgBK11rFUpwg_svdIh_cu0V67sv_mWG6TeEjmm9" alt="If I Owe Taxes Will I Get A Stimulus Check?" width="720" height="480" loading="lazy">
<figcaption class="wp-element-caption">Image by olga_art from <a href="https://pixabay.com/">Pixabay</a></figcaption>
</figure>
</div>
<h2>Stimulus Check Second Round</h2>
The second round of stimulus checks resulted from another economic relief bill that was passed at the end of last year.
This payment ended up being $600 per person plus $600 per dependent. This payment was issued late December 2020 and January 2021 and was recorded on IRS Notice 1444-B.
To be eligible for the second round check, or portion there-of based on phase-out limitations, the maximum income limit is as follows:
<ul>
<li>Single &ndash; adjusted gross income up to $87,000 with a phase-out above $75,000</li>
<li>Head of Household &ndash; adjusted gross income up to $124,500 with a phase-out above $112,500</li>
<li>Married Filing Jointly &ndash; adjusted gross income up to $174,000 with a phase-out above $150,000</li>
</ul>
<div class="wp-block-image">
<figure class="aligncenter is-resized"><img src="https://lh4.googleusercontent.com/KxkQpcuDZCJJ5vsKP_I6x5jsApAPKKDTaq7GUXBLEgTjyxd1lW-pQAQucn5YpN1zxbgDTZoxz96cNXs1Dchw8dzc3ccI6s62P1MeEeZUS7qHPW5hLDO10nDEgeTxGejyg4xrzodU" alt="If I Owe Taxes Will I Get A Stimulus Check?" width="505" height="340" loading="lazy">
<figcaption class="wp-element-caption">Image by jewhisperer from <a href="https://pixabay.com/">Pixabay</a></figcaption>
</figure>
</div>
<h2>Stimulus Check Third Round</h2>
The IRS also issued <a href="https://www.spiral.us/blog/11-things-to-know-about-the-stimulus-check-round-3/">a third stimulus payment</a> via the <a href="https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021" target="_blank" rel="noreferrer noopener">American Rescue Plan Act</a>. This government stimulus check is valued up to $1,400 per eligible adult and qualifying dependent.&nbsp;
Basically, any family member who is a U.S. citizen or resident alien with a Social Security number can qualify.
To be eligible for the third round check, or portion there-of based on phase-out limitations, the maximum income limit is as follows:
<ul>
<li>Single &ndash; adjusted gross income up to $80,000 with a phase-out at $75,000</li>
<li>Head of Household &ndash; adjusted gross income up to $120,000 with a phase-out at $112,500</li>
<li>Married Filing Jointly &ndash; adjusted gross income up to $160,000 with a phase-out at $150,000</li>
</ul>
<h2>Can I Get a Stimulus Check if I Didn&rsquo;t File Taxes?</h2>
You can receive a stimulus check even if you didn&rsquo;t file taxes. However, if you didn&rsquo;t file a 2019 or 2020 tax return or use the IRS Non-Filers tool, you should go ahead and file a 2020 tax return by May 17, 2021.&nbsp;
Even if you didn&rsquo;t work or if you don&rsquo;t normally file, you can still file a federal tax return for 2020.
You can claim the first and second stimulus check, if not received, as part of the tax refund on your 2020 return. The third check will be sent later this year.&nbsp;
<h2>Will I Get a Stimulus Check if I Owe Taxes For 2019?</h2>
Yes, you will get a stimulus check even if you owe taxes for 2019. The latest stimulus payment is exempt from federal debt, state debt or back taxes.&nbsp;
However, the first stimulus check can be reduced if you are in arrears of any child support payments. The second and third checks cannot be reduced or withheld for negligent child support payments.
<div class="wp-block-image">
<figure class="aligncenter"><img src="https://lh6.googleusercontent.com/JzUB6A8HSXV4X9qkr2eFsaQL1vAbG3rZLofXscCEA8PIiR2lQYuMLkjMLZTQYl3Mvq07HaNbTM0jXBjeyEV0XX3WV33aRiADiIK5IIt19v-gJecGYsgGnlWhdr87r8A9LjXAW9Aw" alt="If I Owe Taxes Will I Get A Stimulus Check?">
<figcaption class="wp-element-caption">Image by jewhisperer from <a href="https://pixabay.com/">Pixabay</a></figcaption>
</figure>
</div>
<h2>Recovery Rebate Tax Credit</h2>
If you didn&rsquo;t receive all or any of the stimulus money, the other option is to claim the <a href="https://www.irs.gov/newsroom/recovery-rebate-credit" target="_blank" rel="noreferrer noopener">Recovery Rebate Credit</a>.
While individuals who owed taxes were eligible to receive the stimulus checks, they are not necessarily eligible to receive the full Recovery Rebate Credit.&nbsp;
The IRS can garnish this credit to pay outstanding tax bills. In short, if you receive stimulus checks through the mail or direct deposit, they can not be reduced. <a href="https://www.spiral.us/blog/55-things-you-can-claim-on-your-tax-return/">If you claim the payments as part of your tax refund</a>, it can be reduced.
<h2>Why Have I Not Received My Stimulus Check?</h2>
Don&rsquo;t panic <a href="https://www.spiral.us/blog/4-reasons-why-you-may-not-have-received-your-stimulus-check/">if you have not received any or all of your stimulus checks</a>. If your bank account information changed and the direct deposit is not successful, the IRS will mail your relief check to the address they have on file.
If your mailing address or bank information has changed, you can do one of the following:
<ul>
<li>Update your address and bank information when you file your 2020 federal tax return.</li>
<li>Use the <a href="https://www.irs.gov/coronavirus/get-my-payment" target="_blank" rel="noreferrer noopener">IRS Get My Payment</a> tool to provide your banking information. This is an easy way to track your stimulus check.</li>
<li>You can also notify the IRS by phone, a written statement, or an IRS form.</li>
</ul>
It&rsquo;s also possible you received the economic impact payment and didn&rsquo;t realize it. Some people threw out their payments not realizing what they were.
This Covid relief payment was sent in the form of an EIP card that required activation through the mail. In many cases the recipients ignored it thinking it was spam. The IRS is now sending letters out to those who have not activated their cards.
It&rsquo;s important to keep track of these first two checks because they might need to be included on your 2020 tax return. The good news is that they do not have to be reported as income.&nbsp;
If you didn&rsquo;t receive any or all of your checks, remember you can claim them on your return with the Recovery Rebate Credit and you can reclaim the money you did not receive.&nbsp;
Make sure you received all that you were eligible to receive from the economic stimulus payments. If not, claim it as part of a refund on your 2020 tax return.
<h2>How can Spiral help with your financial goals?</h2>
<a href="https://www.spiral.us/">Spiral is the pioneer of the Impact-as-a-Service&trade;</a> platform that helps banks and financial institutions easily embed sustainability, social impact, ESG, and CSR into their businesses. Their mission is to empower 10,000+ U.S. financial institutions and millions of people to contribute to a better world.

Worried About Receiving Your Stimulus Check If You Owe Taxes Or Haven’t Filed Yet? Here Is Everything You Need To Know To Receive That Check.

If I Owe Taxes Will I Get A Stimulus Check?

Around tax season, many Americans start to eat, sleep and dream, or maybe even have nightmares, about their taxes. Here is a list of some common tax deductions and credits that can save you money on your taxes.


55 Things You Can Claim on Your Tax Return

You always knew babies were expensive, but the actual costs of having a baby during COVID-19 may surprise you. Having a baby during COVID-19 adds even more financial variables and stress for new and expecting parents.



The Real Cost of Having a Baby During COVID-19

What&rsquo;s ahead:
<ol class="is-style-none">
<li><a href="#who qualifies for rd stimulus check">Who qualifies for 3rd stimulus check 2021?</a></li>
<li><a href="#Who is not eligible for a stimulus check">Who is not eligible for a stimulus check?</a></li>
<li><a href="#what is the rd stimulus check based on">What is the 3rd stimulus check based on?</a></li>
<li><a href="#why havent i received my stimulus check yet">Why haven&rsquo;t I received my stimulus check yet?</a></li>
<li><a href="#what is an economic impact payment card and how do i use it">What is an Economic Impact Payment Card and how do I use it?</a></li>
<li><a href="#How do I find out where my stimulus check is">How do I find out where my stimulus check is?</a></li>
<li><a href="#where to cash your stimulus check">Where to cash your stimulus check?</a></li>
<li><a href="#do you have to pay back the stimulus check">Do you have to pay back the stimulus check?</a></li>
<li><a href="#is the stimulus check taxed">Is the stimulus check taxed?</a></li>
<li><a href="#how to claim your stimulus check on taxes">How to claim your stimulus check on taxes</a></li>
<li><a href="#who can i call about my stimulus check">Who can I call about my stimulus check?</a></li>
</ol>
Stimulus check round 3 may have come as a surprise to a number of people. Where did your mind go when you heard that Congress had passed the distribution of the third stimulus check?
Did you imagine the great things you could buy that you&rsquo;ve wanted and haven&rsquo;t had the cash for? Or perhaps like someone on Twitter you would use it to pay off your car loan.
Biden&rsquo;s Stimulus Package means that with the $600 check distributed in December, most American&rsquo;s will have been given $2000 in stimulus payments.
It brings the total amount of money distributed via an american stimulus check to a very large $335 Billion. That&rsquo;s a lot of extra money to spend or put in the bank.
Or maybe even to make a small donation to a worthy cause like <a href="https://www.backpacksforlife.org/" target="_blank" rel="noreferrer noopener">Backpacks For Life</a>, or donate to families hurting from COVID-19, or even <a href="https://www.spiral.us/blog/best-charities-to-donate-to/">Celebrity-Founded Nonprofits</a>.&nbsp;
<a href="https://www.spiral.us/">Spiral, the pioneer of the Impact-as-a-Service&trade; platform</a>, can help to make these types of charitable donations easier because not only does it allow you to save some of what you received but also easily donate some of it, in one simple click. &nbsp;
There are a few things you need to know about getting your stimulus check round 3 though:
<h2>1. Who qualifies for 3rd stimulus check 2021?&nbsp;</h2>
Naturally, US citizens and Green Card holders with a valid social security number are qualifiers, but of course the biggest element of qualifying relates to your income.
There are different criteria depending on your family situation.
<a href="https://www.irs.gov/newsroom/irs-is-issuing-third-round-of-economic-impact-payments" target="_blank" rel="noreferrer noopener">The IRS explains</a> that if you and your spouse file taxes jointly and are not a dependent of another taxpayer then you are eligible.
They also then look at your adjusted gross income, and if it fits within these additional guidelines you are eligible:
<ul>
<li>$150,000, if married and filing a joint return or if filing as a qualifying widow or widower.</li>
<li>$112,500, if filing as head of household.</li>
<li>$75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.</li>
</ul>
That means that a lot of people are eligible for this covid stimulus check of $1400. Are you one of them?
<h2>2. Who is not eligible for a stimulus check?&nbsp;</h2>
Naturally, there are the defined limits that apply to income that means you may not be eligible for this corona virus stimulus check.
For example, if you are married and filing a joint return and your adjusted gross income is $160,000 you won&rsquo;t see a check. That same qualifying amount applies to widows or widowers too.
If you are the head of your household and earn more than $120,000 in adjusted gross income, then you are ineligible too.
Others that don&rsquo;t qualify are single filers and married people filing separate returns who have adjusted gross income of $80,000.
So, you might be thinking, &ldquo;well I don&rsquo;t meet one or more of those criteria&rdquo; so am I still eligible?
There may be other circumstances that mean you might not have been eligible to have received the automatically calculated stimulus payment, but that could mean you might be able to claim the Recovery Rebate Credit on your tax return.
For example, if you had a new child in 2020. That child couldn&rsquo;t possibly have been named on your previous years tax return. It is worth checking with a tax accountant if you think you may be eligible.
<a href="https://www.spiral.us/blog/if-i-owe-taxes-will-i-get-a-stimulus-check/">If you owe taxes will you get a stimulus check?</a> Most likely not, as the amount you would have received as a corona stimulus check will be offset against the outstanding taxes.
<h2>3. What is the 3rd stimulus check based on?&nbsp;</h2>
These stimulus payments are given to people based on the information in their 2019 or 2020 tax returns.
So, if you filed your return for either of those years you don&rsquo;t need to do anything, as your eligibility was automatically determined.&nbsp;
That makes the whole process of receiving this third payment easy. It means you don&rsquo;t have to fill out forms or make any claims.
If you didn&rsquo;t complete those returns, the Treasury Department has nothing to base your eligibility calculation on. Whether a full payment or partial payment, it is still worth looking at all of the eligibility criteria.
<h2>4. Why haven&rsquo;t I received my stimulus check yet?</h2>
There may be a couple of reasons <a href="https://www.spiral.us/blog/5-reasons-why-you-may-not-have-received-your-stimulus-check/">why you haven&rsquo;t yet received your stimulus check</a>.
The Treasury Department used information from 2019 Tax Returns to determine eligibility initially. Therefore if you did not submit your Tax Return for that year, you will not have been issued with a corona stimulus check automatically.&nbsp;
The smart thing to do is to check that you lodged that 2019 return and if not then look into your filing options.
The other reason you haven&rsquo;t yet received your stimulus check round 3 is that it has been held up in the mail. If the IRS didn&rsquo;t make the payment into your bank via direct deposit, they would have sent either a paper check or an Economic Impact Payment Card.&nbsp;
Either the check or the card were sent in a white envelope with a Department of Treasury seal. That is the letter you are looking for.
<h2>5. What is an Economic Impact Payment Card and how do I use it?</h2>
An Economic Impact Payment Card is a payment card issued by the Treasury Department as a way of paying out the third stimulus payment.&nbsp;
The Economic Impact Payment (EIP) Card is a prepaid debit card that can be used to make payments at most outlets where <a href="https://www.spiral.us/blog/debit-cards-the-easy-way-to-stay-debt-free/">debit cards</a> are accepted. You would use this card just as you would any other prepaid debit card.
With the card you can purchase groceries, clothes, visit a restaurant or caf&eacute; or even purchase products online.
<h2>6. How do I find out where my stimulus check is?</h2>
You can check on the status of your payment by going to the <a href="https://www.irs.gov/coronavirus/get-my-payment" target="_blank" rel="noreferrer noopener">Get My Payment</a> tool on the IRS website. It is regularly updated with information.&nbsp;
Direct deposits were made into bank accounts beginning on March 17th so the first thing to check is whether you had your bank details listed on your last tax return.
If you did then that will most likely be the way your payment will be made, via your registered bank.
If you really aren&rsquo;t sure if you supplied your bank details, the best thing to do is register on the IRS site.
By registering with &lsquo;Get My Payment&rsquo; you will see a message that tells you the status of your stimulus payment. One message you would see is &lsquo;payment status&rsquo;, and the <a href="https://www.irs.gov/coronavirus/get-my-payment" target="_blank" rel="noreferrer noopener">IRS website</a> explains this as:
&ldquo;Your payment has been processed and it will be sent on the date shown by direct deposit or mail. If your payment is by mail, you will receive an EIP Card (debit card) or a check. The amount of your third Economic Impact Payment is not shown.&rdquo;
or
&ldquo;You&rsquo;re eligible, but a payment has not been processed and a payment date isn&rsquo;t available yet.&rdquo;&nbsp;
If the site says &lsquo;Payment Status Not Available&rsquo; or &lsquo;Need More Information&rsquo; then the payment hasn&rsquo;t been made and you will need to look into what you need to do to obtain it.&nbsp;
<h2>7. Where to cash your stimulus check</h2>
Don&rsquo;t worry if you don&rsquo;t have a bank account and received a paper corona virus stimulus check. There are a number of places that will cash your covid stimulus check.
Look around in your local area for a Kroger family supermarket, for example. These supermarkets go by different names depending on which state you are in but here is the list:
<ul class="is-style-default">
<li>Kroger</li>
<li>Fry&rsquo;s</li>
<li>King Soopers</li>
<li>Smiths</li>
<li>City Market</li>
<li>QFC</li>
<li>Ralphs</li>
<li>Gerbes</li>
<li>Bakers</li>
<li>Dillons</li>
<li>Pay Less</li>
<li>Fred Meyer</li>
<li>Pick &lsquo;N&rsquo; Save</li>
<li>Metro Market</li>
</ul>
You want to be sure that your local Kroger family supermarket has a &lsquo;<a href="https://moneyservices.kroger.com/check-cashing/" target="_blank" rel="noreferrer noopener">Money Services</a>&rsquo; desk.
If they do, then this is one of the best available options. They will charge you a small fee and there are pieces of ID you will need to take with you in order to cash your check, but it is easy to do.
There are <a href="https://www.forbes.com/sites/jimwang/2020/05/02/where-to-cash-your-stimulus-check-without-a-bank-account/?sh=733d4b3741fd" target="_blank" rel="noreferrer noopener">other service providers</a> who will cash checks too, like <a href="https://www.paypal.com/us/webapps/mpp/check-cashing?utm_medium=cpc&amp;utm_source=Google&amp;utm_campaign=govstim_sem&amp;kid=p53760654275&amp;gclid=Cj0KCQjwjPaCBhDkARIsAISZN7RabKd4wT6umj0cKaiaAAWDVJX1H7zBp3K90-a6UZ5B7WPVPrx9q2QaAlP_EALw_wcB&amp;gclsrc=aw.ds" target="_blank" rel="noreferrer noopener">PayPal</a>, for example who don&rsquo;t charge a fee, so if you don&rsquo;t have a Kroger supermarket close by don&rsquo;t worry.&nbsp;
<h2>8. Do you have to pay back the stimulus check?</h2>
No, you don&rsquo;t have to pay back the stimulus check unless you received it in error.
Some people were incorrectly sent the second stimulus payments. These people were not eligible for the payment due to not meeting the eligibility criteria.
The Treasury expects the people that received these payments to recognize they did not meet the eligibility criteria and return the payment. Here are the key criteria to check:
<ul>
<li>Did you make more than the income limit required?</li>
<li>Were you a nonresident alien for part or all of the year?</li>
<li>The check you received was for someone who is dead.</li>
<li>You received a check but don&rsquo;t have a social security number.</li>
<li>Someone else claimed you as a dependent on their tax return.</li>
</ul>
If you received the second payment and one of these applies then you may want to consider sending the payment back.
<h2>9. Is the stimulus check taxed?</h2>
The IRS sees these checks as &ldquo;an advanced payment of the tax year 2021 Recovery Rebate Credit.&rdquo; What does that mean in layman&rsquo;s terms? It means that your stimulus check is not taxed.&nbsp;
When the CARES Act was signed off at the end of 2020, these payments were viewed as payments you would otherwise be due based on a tax rebate or social security benefits you were due to receive.
So, you need not be concerned with owing taxes on it. In fact, there is a special place for the payment amount on your tax return so it is identified correctly as income, but not as eligible to be taxed.
Remember to save the letter you are due to receive from the Treasury Department detailing your payment as this will help you correctly complete your tax return.&nbsp;
<h2>10. How to claim your stimulus check on taxes</h2>
If you haven&rsquo;t received any notification, or a payment in the form of a direct deposit, check or payment card for the third stimulus check payment, and you think you are eligible, you can make a claim on your next tax return.
For your 2020 tax return, on the 1040 Form there is a box titled &lsquo;<a href="https://www.kiplinger.com/taxes/602269/what-is-the-recovery-rebate-credit" target="_blank" rel="noreferrer noopener">Recovery Rebate Credit</a>.&rsquo;&nbsp; You will want to look into that if you didn&rsquo;t receive the first or second stimulus check payments or you think the amount you received was less than you should have.&nbsp;&nbsp;
Because this third stimulus check has been paid in 2021 it will not be accounted for until next year&rsquo;s tax return.
Tax professionals can always help you determine your eligibility, so reach out to one if you are unsure. You don&rsquo;t want to miss out on the third payment if you are eligible.
<h2>11. Who can I call about my stimulus check round 3?</h2>
Whilst the IRS provides a number to call if you have problems and are yet to receive your third stimulus check, they also advise that there are limited resources available to supply you with information.
The Treasury Department is advising that using the &lsquo;Get My Payment&rsquo; tool is one of the best ways to interact with them.
If for example a paper check was sent out to you via an address the IRS has and the check was returned to them, by updating your information in Get My Payment to include your bank account details, they will then issue a new direct deposit to that account.
It is not possible to use this tool to check on earlier coronavirus checks, only the third payment.
For change of address information, they are suggesting the same thing. Update your details within the &lsquo;Get My Payment&rsquo; tool.&nbsp;
If you still have difficulties with receiving your payment you can try calling the IRS on 800-919-9835 with the understanding that you may have to wait on the line for some time before connecting with a live representative of the support team.
And of course, also being aware that there is limited information they may be able to provide you with.
As the IRS website states &ldquo;Our phone assisters don&rsquo;t have information beyond what&rsquo;s available on IRS.gov.&rdquo;
<h2>Who is Spiral?</h2>
Spiral is the pioneer of the Impact-as-a-Service&trade; platform that helps banks and financial institutions easily embed sustainability, social impact, ESG, and CSR into their businesses. Their mission is to empower 10,000+ U.S. financial institutions and millions of people to contribute to a better world.

Stimulus check round 3 may have come as a surprise to a number of people. Here are 11 things to know about the stimulus check round 3.


11 Things to Know About the Stimulus Check Round 3

What&rsquo;s ahead:
<ul class="is-style-none">
<li><a href="#overall struggle for financial rights for women">Overall struggle for financial rights for women</a></li>
<li><a href="#stereotypes about women and finances">Stereotypes about women and finances</a></li>
<li><a href="#when could women open a bank account in the us">When could women open a bank account in the U.S.?</a></li>
<li><a href="#5 notable women financial pioneers">Notable women financial pioneers</a></li>
<li><a href="#the equal credit opportunity act of">The Equal Credit Opportunity Act of 1974</a></li>
<li><a href="#when could women get a mortgage">When could women get a mortgage?</a></li>
<li><a href="#women continue breaking new ground in the financial arena">Women continue breaking new ground in the financial area</a></li>
<li><a href="#the financial road ahead for women">The financial road ahead for women</a></li>
</ul>
<h2>When could women have a bank account?</h2>
Access to banking services is something nowadays many people may take for granted because it is such an essential part of navigating life in our society. Without a bank account and <a href="https://www.spiral.us/blog/safety-of-online-banking/">online banking</a>, it can be quite challenging to do many things, such as paying certain essential utility bills, applying for most credit cards and obtaining most business loans.&nbsp;
There are even certain employers that will only pay workers via direct deposit to your bank account. Therefore, it is hard to imagine a time when women were not allowed to have a bank account. However, this was the case in the U.S. not so long ago when banks simply would not allow women to open accounts.
So, when could women open a bank account? The road to women finally obtaining this right and all other financial rights of men was long and arduous. Let&rsquo;s explore.
<h2>Overall struggle for financial rights for women</h2>
In order to fully understand the significance of women not being allowed to open bank accounts in the U.S. until the 1960s, you will need to understand the history of the struggle for women&rsquo;s financial rights.&nbsp;
Before the U.S. even existed as a sovereign nation, the American colonies adopted British law that stated that <a href="https://en.wikipedia.org/wiki/Coverture" target="_blank" rel="noreferrer noopener">women were to become the property of their husbands upon marriage</a>. Since only the husband was considered a legal citizen, all of a woman&rsquo;s property she owned prior to marriage became her husband&rsquo;s property.
It was not until <a href="https://www.theguardian.com/money/us-money-blog/2014/aug/11/women-rights-money-timeline-history" target="_blank" rel="noreferrer noopener">1771 that New York became the first state</a> to make it legally required for a husband to obtain the consent of his wife to sell property that his wife had brought into the marriage.&nbsp;
Women had to wait until the next century for the first state, <a href="http://www.hancockcountyhistoricalsociety.com/vignettes/the-mississippi-married-womens-property-act-of-1839/" target="_blank" rel="noreferrer noopener">Mississippi, in 1839 allowed women to legally own property</a> in their own names.
Then, finally in <a href="https://en.wikipedia.org/wiki/Married_Women%27s_Property_Acts_in_the_United_States" target="_blank" rel="noreferrer noopener">1848 New York passed the Married Woman&rsquo;s Property Act</a> which made a woman not automatically liable for the debts of her husband, allowed her to enter contracts, enabled her to collect rents and permitted her to receive inheritance.
<h2>Stereotypes about women and finances</h2>
Women were denied basic financial independence due to false stereotypes about gender which are still largely influential in our society today.&nbsp;
Historically throughout most societies around the world, including American society, women had been considered overly emotional and irrational persons.
They were believed to lack the intelligence and logical faculties that men possess and therefore less capable of being able to properly manage personal finances.&nbsp;
In other words, it was allegedly for a woman&rsquo;s own good that she was not allowed to control her own financial situation, including not being able to have a bank account.&nbsp;
<h2>When could women open a bank account in the U.S.?</h2>
Although it was not yet full rights to commercial banking services, in <a href="https://libertystreeteconomics.newyorkfed.org/2012/05/historical-echoes-our-checking-accounts-ourselves-or-say-good-night-gracies-checking-account-.html" target="_blank" rel="noreferrer noopener">1862 California made the first step towards achieving full rights to banking services</a> for women.&nbsp;
The state passed a law that created the savings and loan industry in California. The law also allowed a woman to control any funds she deposited in her own name.
During this same year San Francisco Savings Union made the first loan to a woman in the U.S.
In <a href="https://en.wikipedia.org/wiki/First_Woman%27s_Bank_of_Tennessee" target="_blank" rel="noreferrer noopener">1919 First Women&rsquo;s Bank of Tennessee</a> was created to cater to only women customers. The bank&rsquo;s employees and directors were women, but all of the bank&rsquo;s shareholders were men.&nbsp;
However, women still did not have the legal protection against being discriminated against by the commercial banking industry.
Most other banks during this time still refused to provide women with bank accounts of their own.&nbsp;
On the other hand, France was well ahead of the U.S. in this regard at this point in time. France had already granted single, unmarried women the right to have bank accounts in 1881.&nbsp;
Then, five years later France gave married women this same right. But, when could women have a bank account in the U.S. finally?
The U.S. did not follow suit until the 1960s when women were finally given the right to have a bank account.
Not until 1975 did the U.K. catch up with the U.S., granting women the same right.
<h2>5 Notable women financial pioneers</h2>
Although women did not even have the right to possess a bank account, it is notable that some exceptional women were able to break gender barriers related to the financial world despite having dramatically less power in this realm.&nbsp;
<ol>
<li>In 1870 <a href="https://en.wikipedia.org/wiki/Victoria_Woodhull" target="_blank" rel="noreferrer noopener">Victoria Woodhull</a> and her sister <a href="https://en.wikipedia.org/wiki/Tennessee_Claflin" target="_blank" rel="noreferrer noopener">Tennessee Claflin</a> became the first women to own a Wall Street stock brokerage.</li>
</ol>
Woodhull, a suffrage activist, would later be the first woman presidential candidate. She chose abolitionist Frederick Douglas to be her running mate.
2. <a href="https://www.nps.gov/mawa/learn/historyculture/female-bank-presidents.htm" target="_blank" rel="noreferrer noopener">Louise M. Weiser</a>, in 1875, became the first woman president of a bank headquartered in the U.S. This was remarkable since, at that time, she could legally be refused an account from a commercial bank on the basis of her gender despite being the president of an American banking institution.
She had inherited the position at Winneshiek County Bank from her late husband. Weiser remained the president of the bank, which was located in Decorah, IA, until 1892.
3. In 1919, <a href="https://en.wikipedia.org/wiki/Madam_C._J._Walker" target="_blank" rel="noreferrer noopener">Sarah Breedlove</a> became the first woman self-made millionaire in the U.S. She made her fortune by founding a line of hair care products designed specifically for Black American women.
Breedlove, who achieved fame under the name Madam C.J. Walker was also a highly successful real estate investor.&nbsp;
4. President Franklin D. Roosevelt made <a href="https://en.wikipedia.org/wiki/Frances_Perkins" target="_blank" rel="noreferrer noopener">Frances Perkins</a> the first woman cabinet member when he appointed her as Secretary of Labor in 1933.
Perkins ended up playing a major role in creating the Social Security System.&nbsp;
5. <a href="https://en.wikipedia.org/wiki/Muriel_Siebert" target="_blank" rel="noreferrer noopener">Muriel Siebert</a> was the first woman to attain a seat at the New York Stock Exchange (NYSE) in 1967. At this time there were 1,365 other seats at the exchange. All of the other seats were occupied by men.&nbsp;
<h2>The Equal Credit Opportunity Act of 1974</h2>
Even though women were given the right to have a bank account in the 1960s, most banks and financial institutions had a policy of disallowing women to apply for credit and loans.&nbsp;
Despite the accomplishments of the first woman bank president, the first woman self-made millionaire and the first woman seated at the NYSE, stereotypes of women not being capable of financial responsibility still pervaded American society.&nbsp;
This resulted in banks viewing loans to women as too financially risky. Therefore, banks would not lend credit to women without having their husbands or another man as co-signers.&nbsp;
So, when could when get credit cards finally?
It was not until 1974 when this shocking inequality was resolved with the passage of the Equal Credit Opportunity Act (ECOA).
The law made it illegal for credit card companies or any other financial institution or lender to discriminate against applicants based on gender, religion, race or national origin.&nbsp;
Also, the ECOA prohibits lenders from asking applicants about their marital status except for in &ldquo;community property&rdquo; states which are states that deem marital property, for purposes of divorce, as property of both spouses regardless of whose name is on the ownership title.
However, this prohibition only applies to those applying for separate, unsecured credit.&nbsp;
The law also makes it illegal for creditors to ask an applicant if he or she plans to have children or any additional children.
However, creditors are allowed to inquire regarding the number of existing children, the ages of the children and any financial obligations connected to the existing children.&nbsp;
Additionally, the ECOA prohibits lenders from disqualifying applicants for receiving alimony or child support payments from a former spouse.&nbsp;
<h2>When could women get a mortgage?</h2>
Not until the passage of the ECOA in 1974 was it possible for women to obtain a mortgage on their own without facing legally permitted discrimination.
Although women could technically be accepted for a mortgage at this point, they still lacked much of the autonomy that men had in regards to home loans and financing.&nbsp;
It was not until 1981 that husbands were required to obtain consent from their wives before taking out a second mortgage on a property that is jointly-owned. This point was finally settled by the U.S. Supreme Court in the case of <a href="https://en.wikipedia.org/wiki/Kirchberg_v._Feenstra" target="_blank" rel="noreferrer noopener">Kirchberg v. Feenstra</a>.
<h2>Women continue breaking new ground in the financial arena</h2>
Since women have been granted full rights to have a bank account and to apply for credit and loans, women have continued to make headway in the world of finances.&nbsp;
In 1975, the first bank owned by a woman opened its doors in New York City. Famously, well-known feminist writer and activist, <a href="https://en.wikipedia.org/wiki/Betty_Friedan" target="_blank" rel="noreferrer noopener">Betty Friedan</a> had an account at the bank.
In 2000, Martha Stewart became the first self-made woman billionaire in the U.S. She became famous as a television personality and made her fortune through various business ventures in the arenas of ecommerce, publishing, merchandising and broadcasting. Stewart was also an author of several bestselling books.
<a href="https://en.wikipedia.org/wiki/Janet_Yellen" target="_blank" rel="noreferrer noopener">Janet Yellen</a> became the first woman head of the Federal Reserve when she was appointed by President Barack Obama in 2014.
She would later be appointed by President Joseph Biden to be the first woman U.S. Secretary of the Treasury in 2021. Notably, Yellen was sworn into this position by Vice President Kamala Harris, the first woman Vice President of the U.S.
<h2>The financial road ahead for women</h2>
Despite making significant progress over many decades, there are still plenty of changes which need to occur in order for women to achieve financial equality. Women are still paid less than men for doing the same work.&nbsp;
The Census Bureau reported in 2018 that on average women earned only 82 percent of the wages earned by men, which is an 18 cent wage gap. For women of color the wage gap is even larger.
Also, women are largely underrepresented in leadership positions within the business world. Despite women making up a majority of the population in the U.S., they only account for 5 percent of CEOs at Fortune 500 companies.&nbsp;
Also, they only make up 7 percent of top executives at Fortune 100 companies and only 10 percent of high level management positions in companies listed in the S&amp;P 500.
There is still a long way to go on the road to true financial equality for women. This road obviously extends well beyond addressing the concern of when could women have a bank account.&nbsp;
Women of color remain even more disadvantaged than white women when it comes to finances.
This is why the financial industry, activists and everyday people must continue to do all that they can to make sure that equality of financial opportunity for women is eventually achieved in the U.S. as well as the rest of the world.&nbsp;
<h2>Spiral Impact-as-a-Service&trade;</h2>
<a href="https://www.spiral.us/">Spiral is the pioneer of the Impact-as-a-Service&trade;</a> platform that helps banks and financial institutions easily embed sustainability, social impact, ESG, and CSR into their businesses. Their mission is to empower 10,000+ U.S. financial institutions and millions of people to contribute to a better world.
Spiral&rsquo;s impact-driven products allow people to <a href="https://www.spiral.us/blog/4-surprisingly-easy-ways-to-make-your-money-fight-for-what-you-believe-in/">donate more easily to their favorite causes</a>, including non-profits and charities working to create a more equitable society for women.

In order to fully understand the significance of women not being allowed to open bank accounts in the U.S. until the 1960s, you will need to understand the history of the struggle for women’s financial rights.


When Could Women Have a Bank Account? A Short History of Financial Gender Equality and the Financial Road Ahead

What&rsquo;s ahead:
<ol class="is-style-none">
<li><a href="#shop for everyday items from brands that donate to ethical causes">Shop for everyday items from brands that donate to ethical causes</a></li>
<li><a href="#set up automatic donations with your favorite nonprofit">Set up automatic donations with your favorite non-profit</a></li>
<li><a href="#talk to your employer about a donationmatching program">Talk to your employer about a donation-matching program</a></li>
<li><a href="#find a new banking app or credit card that makes donating easy">Find a new banking app or credit card that makes donating easy </a></li>
</ol>
As a society, we are more connected than ever. Each of us has the opportunity to have a voice and a platform, and people are using their platforms to bring attention to the causes and issues that are closest to their hearts.&nbsp;
But beyond our words, what can we do to impact more significant change in the world around us? After you get home from the march or put the camera down, what more can you do to continue to advocate for the causes you most believe in while you&rsquo;re balancing the necessities of daily life?&nbsp;
Believe it or not, where and how you spend your money can directly impact &ldquo;tipping the scales&rdquo; toward the causes you care about.&nbsp;
No matter what causes strike nearest and dearest to you, here are some simple ways you can make your money fight for what you believe in:&nbsp;&nbsp;
<h2>1. Shop for everyday items from brands that donate to ethical causes</h2>
From cleaning up our oceans to fighting for social equity, it&rsquo;s not just activists in the streets working towards building a better world. From independent sellers to globally-recognized labels, brands of all sizes are making commitments to use a portion of their profits to further causes that are important to them.&nbsp;
<a href="https://delilahhome.com/pages/about-us" target="_blank" rel="noreferrer noopener">Delilah Home Goods</a> not only produces home goods made from sustainable materials, they donate 10% of their proceeds to local charities supporting children, families, even animals.&nbsp;&nbsp;
<a href="https://www.oceansintegrity.com/" target="_blank" rel="noreferrer noopener">RIO</a>, a company that produces sustainable household paper products and plastic alternatives, also donates a portion of the proceeds to clean up trash-laden beaches in Indonesia.&nbsp;
Whatever your passion may be, look for brands that automatically donate a portion of their profits to non-profit organizations that are active in the areas you care about. With a simple, everyday purchase, you automatically put money in the pockets of organizations working hard to do good.&nbsp;
<h2>2. Set up automatic donations with your favorite non-profit</h2>
With the nonstop rhythm of everyday life, it can be difficult to budget for and prioritize giving. Thankfully, with the rise in online donation platforms, many non-profits offer an option to give a set amount every month automatically.&nbsp;
Even a small amount adds up over time, and by &ldquo;setting it and forgetting it,&rdquo; you can donate to your favorite causes without breaking up the rhythm of your everyday life.&nbsp;
If you&rsquo;re looking for an even easier way to set up automatic donations, new ethical banking&sup1; service Spiral allows you to donate to your favorite charities in the same place you manage the rest of your spending. Spiral will even match your donations to eligible charities up to $150 per year&sup3;. And all Spiral bank accounts are issued by nbkc bank, Member FDIC and insurance of accounts of up to $5,000,000 is available.⁷
<h2>3. Talk to your employer about a donation-matching program</h2>
Many workplaces already offer donation-matching programs where your employer will match whatever donation amount you give to your favorite non-profits up to a certain amount. This means you make double the impact with the same amount you already give.&nbsp;
For example, <a href="https://doublethedonation.com/forms/google-guidelines.pdf" target="_blank" rel="noreferrer noopener">Google</a> offers its employees donation matching from a minimum of $50 all the way up to $6000 per year. This means employees who donate $6000 a year to causes they believe in make a $12,000 impact overall. That&rsquo;s not small change.&nbsp;
If your employer doesn&rsquo;t have a donation matching program, suggest one! There are many benefits that employers can access by increasing their charitable giving, and by leading the way in getting one off the ground, you can suggest causes that are most important to you be included in their approved non-profit list.&nbsp;&nbsp;
<h2>4. Find a new banking app or credit card that makes donating easy</h2>
We all love our rewards points, but many people don&rsquo;t realize that in addition to flights, many credit card companies allow you to donate your rewards points directly to approved charitable organizations. This means that a percentage of every purchase can be going directly to the causes you believe in.&nbsp;
There are some limitations to these programs, as most major credit card companies only let you donate to a handful of approved organizations. However, some banking apps and <a href="https://www.spiral.us/blog/debit-cards-the-easy-way-to-stay-debt-free/">debit cards</a> are taking things further.
<a href="https://www.spiral.us/" target="_blank" rel="noreferrer noopener">Spiral</a>, for example, is the pioneer of the Impact-as-a-Service&trade; platform that helps banks and financial institutions easily embed sustainability, social impact, ESG, and CSR into their businesses. Their mission is to empower 10,000+ U.S. financial institutions and millions of people to contribute to a better world.
As Booker T. Washington once said, &ldquo;those who are happiest are those who do the most for others.&rdquo; We all want to do our part to positively impact the world around us, and we can do so even in our everyday spending. You can live a better life while building a better world with each conscious dollar you spend.&nbsp;We are here to help you fight for what you believe in.

No matter what causes strike nearest and dearest to you, here are some simple ways you can make your money fight for what you believe in. 


Ethical Banking