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New Charitable Deduction Available for Non-itemizers
Under the CARES Act, taxpayers who do not itemize their deductions will be able to claim a charitable deduction of up to $300 for cash donations made in 2020. This means that you could add an additional $300 to your charity budget this year, recover a portion of it in tax savings, and help charities address extraordinary current needs.
Example: Suppose that you are over the age of 65 and your itemized deductions would total $12,000. You would claim the standard deduction of $13,700 rather than itemizing. If you give at least $300 in cash to qualifying charities this year, you can elect the standard deduction of $13,700 and also deduct $300 - for total deductions of $14,000. |
