This year the IRS is allowing all taxpayers-even if you don’t itemize-to deduct up to $300 in donations made to 501-C3 charitable organizations. Grayson LandCare does qualify. If you have already made a donation, to GLC or another non-profit, or would like to do so before the end of 2020 you can do a good deed and decrease your tax liability. Read more below.
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. Here is the link to the full information