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
FCL LLC (“DRW Financial”) is a registered investment advisor offering advisory services in the State(s) of TN, GA, IL, OK and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by DRW Financial in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant to an applicable state exemption.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of DRW Financial, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.