The Coronavirus Aid, Relief and Economic Security (CARES) Act temporarily allows taxpayers to donate up to $300 to charity and deduct that from their 2020 taxable income. In the past (and including 2019 Federal Income Taxes), charitable contribution tax deductions have only been permitted by those who itemize their taxes. For the 2020 tax year, taxpayers can claim the “above-the-line” tax deduction even if they file for the standard deduction thus decreasing a taxpayer’s taxable income. Non-profits like United Way of Central Georgia have long fought for the “universal charitable deduction” and are hopeful it will provide one more reason for donors to give especially during this time of crisis.
“Most donors do not give just because of a tax deduction, but for those that are considering supporting local charitable efforts now is the perfect time to take advantage of this “above-the-line” opportunity to help bring critical services to our community during this health and economic crisis,” said George McCanless, President and CEO of United Way of Central Georgia. “Many non-profits are struggling right now figuring out how they’ll continue to meet the most basic needs in our community like food and shelter. These charities rely on events and promotions that have been cancelled due to COVID-19. We are hopeful that this temporary tax deduction will allow taxpayers to dig a little deeper to help out their neighbors during these unprecedented times.”
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