2020 Tax Tips-Cares Act-New Charitable Deduction

The CARES act of 2020 brought some substantial changes to charitable donation deductions made exclusively in 2020.

Normally you must opt for an itemized deduction to get anything from donations made in the tax year. This is because of job cuts and the huge loss of donations to non-profit organizations in 2020 (Due to Covid-19 restrictions). The Trump administration included a NEW $300 charitable donation you can deduct if you use a standard deduction with an additional above-the-line deduction only for the tax year 2020.

Individuals can elect to deduct donations up to 100% of their 2020 AGI (up from 60%). Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.

If you would like to learn more regarding what to do if qualified see the link provided earlier in this post. To set up a consultation call Marlies Y Hendricks CPA PLLC at either 716-694-3500 or 910-769-8730.

The above information is of a general nature only and should not be relied upon for specific situations. Click here for additional tax services information