If you are thinking about make a donation to Karen Ann Quinlan Hospice – here’s another good reason to do it today!
COVID Tax Tip 2020-153, November 12, 2020
Whether taxpayers are supporting natural disaster recovery, COVID-19 pandemic aid or another cause that’s personally meaningful to them, their charitable donations may be tax deductible. These deductions basically reduce the amount of their taxable income.
Here’s how the CARES Act changes deducting charitable contributions made in 2020:
Previously, charitable contributions could only be deducted if taxpayers itemized their deductions.
However, taxpayers who don’t itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For the purposes of this deduction, qualifying organizations are those that are religious, charitable, educational, scientific or literary in purpose. The law changed in this area due to the Coronavirus Aid, Relief, and Economic Security Act.
The CARES Act also temporarily suspends limits on charitable contributions and temporarily increases limits on contributions of food inventory. More information about these changes is available on IRS.gov.
- The CARES Act, which went into effect this spring, established a new above-the-line deduction for charitable giving.
- You can write off up to $300 in cash donations on your 2020 income tax return, which you’ll be filing next spring.
- Normally, you’d have to itemize deductions to write off charitable giving when you file your taxes. About 14.8 million households took a tax break for donating to charity in 2018, according to the IRS.
Karen Ann Quinlan Hospice is not giving tax advice. Each situation is different. Please contact your accountant to see if you qualify for this tax deduction.