The new charitable deduction for 2020
Residents of the United States are ranked as among the most generous in the world according to some surveys. However, many charitable organizations are now experiencing a decline in donations given as we find ourselves dealing with a public health crisis.
In response to this, Congress added a provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, intended to provide relief for charitable organizations. The CARES Act permits eligible individuals who do not itemize deductions to deduct up to $300 of qualified donations as an “above-the-line” deduction on your 2020 tax return. This is great news if you have not been able to itemize your tax deductions that last two years due to the tax law changes.
If you decide to donate to a charitable organization, make sure to do so before December 31, 2020 and save record of this. The IRS requires any cash donation over $250 to any one charity have a written acknowledgment from the charity. Any amount you donate over $300 will be disallowed and can not be carried forward to future years.
If you want to ensure you will receive the benefit of this deduction, please reach out to your trusted professional at Findon & Associates. To learn more about our services, please click here or get in touch with us by clicking here.