Special Tax Deduction for 2020 Allows Donations of $300 to Charity without Itemizing
As we enter the giving season, there is an additional reason to be charitable this year. Congress enacted a special provision that allows more people to easily deduct up to $300 in donations to qualifying charities this year.
Since the increase in the standard income tax deduction in 2018, only 11 percent of taxpayers itemize deductions, so fewer taxpayers take advantage of the charitable deduction. But to both encourage and reward giving in this difficult year, as part of the CARES Act, Congress created a one-time $300 charitable deduction for people who do not itemize on their tax returns. To qualify, you must give cash (including paying by check or credit card) to a 501(c)(3) charity. Gifts of goods or stock do not qualify.
Can a married couple deduct $600?
One thing that's not clear is whether a married couple filing jointly can deduct $600. While it's logical that they should be able to do so, the IRS has not clarified this yet. With just six weeks left in the year, times a wasting.
$300 Can Make a Tremendous Impact
While $300 may not seem like much, it can make a big difference to smaller charities. And a lot of $300 gifts can add up.
Here are some places you might take a look at to determine which charity you would like to support before the end of the year:
For more information about the tax deduction, click here.