The New Charitable Deduction
The CARES Act that Congress passed in response to the COVID-19 crisis is best known for its Payroll Protection Program SBA loans and other measures of cash relief. Getting less attention are the provisions that increase the tax-deductibility of donations to charities.
For the over 9 out of 10 people who no longer itemize their charitable giving, the CARES Act will allow these individual taxpayers to deduct cash donations to a (501(c)(3) public charity of up to $300 on their 2020 federal tax return, even though they take the standard deduction. Married-filing-jointly taxpayers will get an above-the-line deduction of up to $600.
The window for taking advantage of these changes closes December 31, 2020.
From the Foundation Group CEO’s Blog
Please consult your tax advisor for further information about deducting cash donations of up to $300 to public charities on your 2020 federal tax returns.