The CARES Act gives taxpayers a dollar-for-dollar tax deduction of up to $300.
Among the tax law changes adopted by Congress to address this year’s Coronavirus epidemic is one that will allow you to help others and save on your tax bill at the same time.
The CARES Act, approved by Congress this past Spring, gives taxpayers a dollar-for-dollar tax deduction of up to $300 when they make a documented cash contribution to a qualified charity before December 31, 2020. In order for the cash contribution to be documented you will need a written record of the donation like a receipt from the organization indicating your name, contribution amount and date.
This is an above-the-line deduction, available even to those who don’t itemize and instead use the standard deduction of $12,400 for single filers or $24,800 for married couples. While almost ninety percent of taxpayers now use the standard deduction, this charitable deduction lowers your taxable income by up to $300, so you pay less as you assist your community. If you are unsure if your charity of choice is a qualified charity click here.
In this unusual holiday season, there is so much need and charities are struggling to assist those impacted by the epidemic and economy. Perhaps you have last minute gift giving needs or you have been unable to leave home to shop. Please consider making a cash contribution to a local nonprofit or charity in honor of family or friends, or on your own behalf that will help your neighbors and your community while lowering your tax bill.
Beth J. Kern provides legal services to individuals and businesses. Beth completed her Juris Doctorate from Widener University Commonwealth Law School in 2020. Beth attended law school as an evening division student, working full-time as Legal and Compliance Manager for Flagger Force. Beth received her Bachelor’s degree in Marketing with a minor in Advertising from York College of Pennsylvania. She is a proud graduate of Susquehannock High School.
Beth may be reached directly at (717) 848-4900, Ext. 171 or by email: firstname.lastname@example.org.
If you have questions about charitable deductions or any other area of Estate Planning, reach out to a CGA Estate Planning Attorney.
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