Here is a tidbit from: Special tax deductions available this year for cash donations to charities; IRS works to raise awareness | Internal Revenue Service

The Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted by Congress last spring, includes several temporary tax changes helping charities. This includes a special $300 deduction designed especially for people who choose to take the standard deduction, rather than itemizing their deductions.

What does this mean for the average taxpayer? Nearly nine in 10 taxpayers now take the standard deduction and could potentially qualify for this new tax deduction. Our most recent figures from 2018 show more than 134 million taxpayers claimed the standard deduction, representing more than 87% of all filers.

So if someone makes a cash donation to a qualifying charity before the end of 2020, they can get a deduction of up to $300. This will be easy to report when they fill out their Form 1040 in 2021, especially if they file electronically.

The deduction lowers both adjusted gross income and taxable income – translating into tax savings for those making donations to qualifying tax-exempt organizations.

So what exactly does this mean?

If you don’t itemize on your Federal taxes [form 1040], which now has a higher standard deduction [see Topic No. 551 Standard Deduction | Internal Revenue Service (irs.gov) ], you can deduct an additional $300 cash contribution to tax exempt organizations, but you must do so before the end of this year.  [So if you are in a 15% tax bracket it saves you $45, if 20% tax bracket, it saves $60\!

See the above links for verification.

73,
Don
502-868-9470
dondz@bellsouth.net

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