In 2020, federal legislation tied to the CARES Act created a new deduction that just about anyone can take, as long as you use the standard deduction. That means, if this applies to you, you can likely reduce your taxable income by $300 per tax return.
To qualify, your donation must be:
- Money shared via cash, check or debit card (in other words, this doesn’t include donating stuff or services, like dropping $300 worth of furniture and clothes at your local thrift shop, or donating graphic design services to your favorite community group);
- Made in calendar year 2020 (i.e. no later than Dec. 31, 2020); and
- Made to a qualified charitable organization.
You can use this handy search tool to make sure the organization(s) you give to qualifies. And be sure to keep records of any qualifying donations, such as a receipt or letter sent to confirm the donation.
Don’t forget to let your tax preparer know if you have any charitable donations you want to include on your tax return, both through our website questionnaire and during your tax appointment.
Go to BrassTaxes.com to make your appointment today, and we’ll help you take advantage of every tax deduction and credit you qualify for!