American Taxpayers Can Deduct Charitable Contributions On 2020 Returns, Even Without Itemizing
The IRS estimates that nearly 90% of US taxpayers take the standard deduction instead of itemizing.
Under the new tax code, not itemizing made it virtually impossible to claim a tax deduction for contributions to charitable organizations.
But according to Business Insider, the pandemic relief CARES Act has a provision incentivizing Americans to help others in need.
It's an above-the-line charitable tax deduction.
Beginning with 2020 tax returns, taxpayers can claim up to $300 in cash contributions made by December 31 to charity as a deduction without itemizing.
The IRS says roughly 130 million American taxpayers could benefit by donating, as it reduces their taxable income.
Under the new tax code, not itemizing made it virtually impossible to claim a tax deduction for contributions to charitable organizations.
But according to Business Insider, the pandemic relief CARES Act has a provision incentivizing Americans to help others in need.
It's an above-the-line charitable tax deduction.
Beginning with 2020 tax returns, taxpayers can claim up to $300 in cash contributions made by December 31 to charity as a deduction without itemizing.
The IRS says roughly 130 million American taxpayers could benefit by donating, as it reduces their taxable income.
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