18 Sep 2020 CARES Act Expands Donation Deductions
In most cases, charitable gifts are deducted by taxpayers who itemize. Those donations are claimed on Schedule A of their annual tax return. However, this year, the Coronavirus Aid, Relief and Economic Security (CARES) Act expanded the donation deduction to taxpayers who claim the standard deduction. On your 2020 taxes, you can now claim up to $300 in monetary gifts to qualified charitable organizations. If you are able and want to donate more, that’s great. You’ll just need to itemize.
With all of the natural disasters happening in addition to the pandemic there are many who need help. We suggest you research charities that are soliciting donations. Charity Navigator, GuideStar and the IRS Exempt Organizations Select Check can help you determine if a charity is reputable and does what it promises. Such checking is the first step if you want to claim the charitable donation on your taxes. Your charitable gift must be to a legitimate, IRS-qualified nonprofit.
Note: Be skeptical of organizations making unsolicited phone calls or sending emails. They could be scams. It’s common for scammers to exploit people’s charitable nature during a disaster.
If you have any questions about the CARES Act or your tax situation please Contact Us.