CARES ACT – $300 Charitable Contribution Rule
Usually, only those who itemize their deductions qualify for the charitable contribution deduction, and taxpayers are also only allowed to deduct donations that are up to 60% of their AGI. However, the new $300 deduction from the CARES Act is specifically for those who don’t itemize their deductions and would typically not get any tax benefit for donations. Since it’s considered an above-the-line deduction, the IRS applies it when calculating your AGI. In other words, if you donate up to $300 in cash to a qualified organization, your AGI will be reduced by up to $300—and you can still claim the standard deduction.
Remember, the deduction only applies to cash donations made to qualified 501(c)(3) organizations. The IRS.gov site has a database with every qualified organization, which you can search to make sure your charity of choice qualifies.… Read More