Remember: This Year There Is a Special Deduction for Charitable Donations

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Generally speaking, we should always strive to make a difference, but this mindset is more important than ever this 2020. That’s why this year the IRS offers taxpayers a special tax deduction for cash donations to qualifying charities.

Read on to learn more about this special deduction and what aspects to keep in mind if you decide to claim it.

A Deduction of Up to $300

The Coronavirus Aid, Relief and Economic Security (CARES) Act enacted last spring includes a special tax deduction available until December 31, 2020, to taxpayers who give a donation of up to $300 in cash to a qualifying charitable institution and choose the standardized deduction instead of itemizing their deductions.

It’s worth remembering that in this case “cash” also includes donations made by check, credit card, or debit card.

The deduction lowers both adjusted gross income and taxable income, translating into tax savings.

Two Things to Keep in Mind

If you decide to donate to a charity and you wish to claim this special deduction, there are two important things to keep in mind.

First, prior to making your donation, don’t forget to use the IRS online tool Tax Exempt Organization Search to make sure the institution is eligible for tax-deductible donations.

Finally, once you have made your donation, make sure to keep all related documents. This is as simple as obtaining a receipt or acknowledgment letter from the charity before filing your tax return and retaining a canceled check or credit card receipt.

More Tips About Taxes

Learning more about taxes is always a smart move, as it helps you avoid fines and missed deductions. Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

Need help preparing your taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email, telephone, or through our social media accounts on FacebookTwitter, and LinkedIn to learn more about our services.

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