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Your Partners for Success Since 1977

by Amanda Domitrowich

Individuals will be able to claim a $300 above-the-line deduction for cash contributions to qualified public charities in 2020. This rule effectively allows a limited charitable deduction to taxpayers claiming the standard deduction.

This new deduction is a COVID-related change for 2020 and an effort on the IRS part to reward those who contribute:

“Our nation’s charities are struggling to help those suffering from COVID-19, and many deserving organizations can use all the help they can get,” said IRS Commissioner Chuck Rettig. “The IRS reminds people there’s a new provision that allows for up to $300 in cash donations to qualifying organizations to be deducted from income. We encourage people to explore this option to help deserving tax-exempt organizations – and the people and causes they serve.”

In addition, the percentage limit on charitable contributions has been raised from 60% of modified adjusted gross income (MAGI) to 100% for those itemizing.

Give us a call today to discuss how this will affect your and your family’s tax returns!

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