Charitable giving opportunity for 2020
One special provision in the CARES Act can help you and your favorite charity
The last few years have featured many changes in tax laws, and it can be easy to feel overwhelmed or lost in those changes, but there is one new rule that can provide a pretty straightforward benefit for most tax payers AND one or more of the philanthropic causes they support.
The short version, per a quote from the IRS wesbite:
...taxpayers who don't itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For the purposes of this deduction, qualifying organizations are those that are religious, charitable, educational, scientific or literary in purpose. The law changed in this area due to the Coronavirus Aid, Relief, and Economic Security Act.
Deduct up to $300 from taxable income, without "itemizing"
Historically, to deduct charitable giving on a personal tax return required that the tax payer "itemize", and when the "standard deduction" doubled recently, many taxpayers found it difficult to itemize enough deductions to be worthwhile. This new provision in the CARES Act allows taxpayers to deduct up to $300 without itemizing.
For detailed questions on your taxes, I recommend speaking with a CPA or Enrolled Agent.
For more insights on charitable giving, philanthropic planning, and how to align your finances with your values, please consider engaging an advisory firm like DRW Financial. David holds the Chartered Advisor in Philanthropy® designation, and loves working with non-profits and their donors.
David R Wattenbarger, president of DRW Financial
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