There is a benefit of the CARES Act which has not been given much attention. This will help most people who donate to charity. Usually, when a taxpayer takes the standard deduction they cannot claim a deduction for charitable contributions. The CARES Act will allow individuals to claim a limited deduction on the 2020 federal income tax returns for cash contributions made to certain qualifying charitable organizations AND still claim the standard deduction.
This is an "above-the-line" deduction that individuals can claim of up to $300 for cash contributions made to qualifying charities during 2020. The maximum above-the-line deduction is $150 for married couples who file separately.
Cash contributions include those made by check, credit card, or debit card as well as amounts incurred by an individual for unreimbursed out-of-pocket expenses in connection with the individual’s volunteer services to a qualifying charitable organization. Cash contributions don’t include the value of volunteer services, securities, household items, or other property.
If you or someone you know is in need of a tax preparer, please feel free to contact me at 702-469-9426 of cstevens@numbercruncherllc.tax.
Candace Stevens, CEO/President of
Number Cruncher LLC
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