Though 2020 is coming to an end, there is still time left to make charitable contributions that qualify as a tax deduction on your 2020 federal income tax return.
Thanks to the passage of the CARES Act, there is an opportunity for additional giving at a time when the demand for services is up, and the donations are down at many non-profits.
Taxpayers typically receive an income tax benefit for charitable deductions if he or she itemizes deductions on their federal tax return. That means millions of taxpayers do not receive a tax deduction for charitable contributions. Not this year. Under the CARES Act, taxpayers are entitled to claim up to a $300 charitable deduction on their federal tax return regardless of whether they use the standard deduction or itemize deductions on their federal tax return. The maximum deduction is $300 per couple.
Any increase in contributions would help non-profit organizations whose roles have become greatly magnified in the midst of the COVID-19 pandemic. The ability to contribute to charity and get a tax deduction is a chance to give back and get back, a win-win to close out what has, by all accounts, been a challenging year.
Attorney John F. Leone has practiced for more than 25 years with a focus on helping people with their retirement plans, wills, estate planning, and estate and trust administration. He can be reached at Gross Shuman, P.C. by calling 716-854-4300 ext. 243 or email@example.com.