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$300 Tax Deduction

12/10/20 | Church Articles | by Karen Chaffee

$300 Tax Deduction

    Special $300 tax deduction helps most people give to charity this year – even if they don’t itemize

    As part of the Coronavirus Aid, Relief and Economic Security Act, taxpayers who take the standard deduction are allowed an additional above-the-line deduction of up to $300 for charitable donations made in cash. Previously, charitable contributions could only be deducted if taxpayers itemized deductions.

    Taxpayers who itemize can deduct up to 100% of their adjusted gross income for cash donations (up from 60%) made in 2020.

    These incentives don’t apply to all contributions — only those made to qualifying public organizations, which the IRS defines as “those that are religious, charitable, educational, scientific or literary in purpose.”

    Contributions to donor-advised funds, non-operating private foundations and support organizations don’t qualify for this deduction.