The newly passed Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) contains two provisions that will be of interest to folks who want to help their communities this year. Section 2104 creates an above the line deduction of up to $300 for contributions made in 2020. This is important because after the Tax Cuts and Jobs Act (TCJA) a couple years ago, many folks no longer itemize, which means that they are not eligible to receive a tax benefit for the charitable deductions that they make over the course of the year. So, if you now claim the standard deduction, individual taxpayers can claim a deduction for the amounts up to $300 that they donate to charity. They don’t let you double-dip though, so if you itemize, you would claim your deductions on Schedule A as usual.
Friend of the firm, Arlene Cogen, has the #1 new release in Finance on Amazon – Give to Live: Make a Charitable Gift You Never Imagined.
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If you are charitably inclined, there are tax-advantaged ways to make a gift to a favorite charity while enjoying the income from that gift during your lifetime.