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

IR-2020-264, November 25, 2020
WASHINGTON — The Internal Revenue Service today reminded taxpayers of a special new planning that will allow more people to well deduct up to $ 300 in donations to qualifying charities this year .
Following particular tax law changes made earlier this year, cash donations of up to $ 300 made before December 31, 2020, are immediately deductible when people file their taxes in 2021 .
“ Our nation ‘s charities are struggling to help those suffering from COVID-19, and many deserving organizations can use all the assistant they can get, ” said IRS Commissioner Chuck Rettig. “ The IRS reminds people there ‘s a modern provision that allows for up to $ 300 in cash donations to qualifying organizations to be deducted from income. We encourage people to explore this option to help deserving tax-exempt organizations – and the people and causes they serve. ”

The Coronavirus Aid, Relief and Economic Security ( CARES ) Act, enacted last spring, includes several irregular tax changes helping charities, including the special $ 300 subtraction designed specially for people who choose to take the standard subtraction, rather than itemizing their deductions .
about nine in 10 taxpayers nowadays take the standard deduction and could potentially qualify for this newly tax deduction. In tax-year 2018, the most holocene year for which complete figures are available, more than 134 million taxpayers claimed the standard deduction, precisely over 87 % of all filers .
Under this modern change, person taxpayers can claim an “ above-the-line ” subtraction of up to $ 300 for cash donations made to charity during 2020. This means the deduction lowers both adjusted gross income and taxable income – translating into tax savings for those making donations to qualifying tax-exempt organizations.

Before making a contribution, the IRS reminds people they can check the special Tax Exempt Organization Search ( TEOS ) tool on IRS.gov to make sure the constitution is eligible for tax-deductible donations .
Cash donations include those made by confirmation, accredit tease or debit card. They do n’t include securities, family items or early property. Though cash contributions to most charitable organizations qualify, some do not. Check Publication 526, charitable Contributions, and the TEOS for more information.

Though cash contributions to most charitable organizations qualify, those made to supporting organizations and donor-advised funds do not .
The IRS reminds everyone giving to jacob’s ladder to be sure to keep good records. By law, particular recordkeeping rules apply to any taxpayer claiming a charitable contribution tax write-off. normally, this includes obtaining a acknowledge or acknowledgment letter from the charity, before filing a return, and retaining a cancel check or credit card receipt. For details on these recordkeeping rules, see Publication 526, available on IRS.gov .
In addition, the CARES Act includes other irregular provisions designed to help charities. These include higher charitable contribution limits for corporations, individuals who itemize their deductions and businesses that give food inventory to food banks and other eligible charities. For more information about these and other Coronavirus-related tax easing provisions, visit IRS.gov/coronavirus .

source : https://www.peterswar.net
Category : Finance

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