Posted in Tax Law & IRS Defense
The CARES Act, enacted by Congress previously this year, includes a special $300 charitable tax deduction, even if you do not itemize your deductions on your taxes. The purpose of this deduction is to help charities that may be struggling due to the COVID-19 pandemic. This new and temporary deduction is only available to taxpayers who make a cash contribution directly to a charity and before the end of the 2020 year.
This means you cannot contribute stocks, bonds, or other types of securities. Furthermore, taxpayers should be sure they are donating to a Tax-Exempt Organization. If you are not sure whether an organization is considered exempt by the IRS, you can check the organization’s status on the IRS website or by clicking here. Be sure to make to make your donation by December 31, 2020 to claim the deduction on your 2020 taxes.