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Get an Extra $300 (or more) for Donations This Year
To boost donations to charities during the COVID-19 pandemic, the IRS is allowing extra charitable contribution deductions for 2020.
Taxpayers who claim the standard deduction will be able to deduct up to $300 in donations to registered charities without itemizing. According to the IRS, this change applies to 87% of taxpayers.
Taxpayers who itemize deductions on schedule A also benefit from increased limits on charitable contribution deductions. This year they can deduct up to 100% of their Adjusted Gross Income (previously limited to 60%).
How to prepare for these changes?
Check if the charity is registered with the IRS Tax Exempt Organization Search (TEOS) tool
Get your paperwork in order
Confirmation letter from the organization
Cancelled check or a receipt from the organization
There’s still time to make donations!
Make donations to qualifying charities until December 31st, 2020.
Be sure to save the documents needed (see above)
Please consult your own tax advisor for information about your specific tax situation. If you need a tax advisor, connect with Accountress