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Charitable Cash Gifts in 2020?

June 17, 2020

The CARES Act, which provided many Americans with a $1200 direct economic stimulus payment also offered additional one-year additional tax saving benefit.  Realizing that 501(c)3 not-for-profit organizations were also hurt by reduced charitable giving, Congress included a clause in the Act that allows for up to $300 as an “above the line” deduction for tax filers who benefit from taking the increased standard deduction and who otherwise would not qualify for the charitable deduction credit on their 2020 taxes.

If you do not think you will be itemizing your taxes for 2020, but instead, taking the standard deduction, consider writing a check to support your favorite qualified charitable organization of up to $300.   Your gift not only helps support the charity but it also reduces the amount of income that you may be taxed on.  Consider making a tax-deductible contribution before the end of the year, because this tax benefit only applies to the 2020 fiscal year.

#DoGood #CARESAct #CharitableGiving

 This should not be construed as tax or legal advice. As always, you should consult with your tax and legal advisors when considering making a charitable gift. 

For more information, contact Keith Piscitello, CFP® CRPC® at (773) 867-3660