THE TRANSATLANTIC MAGAZINE
THE TRANSATLANTIC MAGAZINE
The IRS has issued a reminder of a new special rule for 2020 which allows US taxpayers to make a $300 tax deductible donation to charity, even if they don't itemize.
The new provision was introduced by law as part of the CARES Act earlier in 2020, and allows taxpayers to "easily deduct $300 in donations to qualifying charities this year". The deduction is "designed especially for people who choose to take the standard deduction, rather than itemizing their deductions", with the IRS saying that nearly 9 in ten of standard deduction taxpayers could potentially qualify.
Explaining the provision, IRS Commissioner Chuck Rettig said that "Our nation's charities are struggling to help those suffering from COVID-19, and many deserving organizations can use all the help they can get. The IRS reminds people there's a new 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."
You can find out if a charity is a qualifying organization by using the IRS' Tax Exempt Organization Search (TEOS) Tool.
For more details on the provision, go to www.irs.gov/newsroom/special-300-tax-deduction-helps-most-people-give-to-charity-this-year-even-if-they-dont-itemize.
