The CARES Act allows for an additional, “above-the-line” deduction for charitable gifts made in cash of up to $300. With a donation to MPAC – you can claim this new deduction! Read through this guide on what this means and how you can qualify:
Taxpayers who don’t itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For the purposes of this deduction, qualifying organizations are those that are religious, charitable, educational, scientific or literary in purpose. The law changed in this area due to the Coronavirus Aid, Relief, and Economic Security Act. Previously, charitable contributions could only be deducted if taxpayers itemized their deductions.
The CARES Act also temporarily suspends limits on charitable contributions and temporarily increases limits on contributions of food inventory. More information about these changes is available on IRS.gov.
If you take the standard deduction, yes! You can deduct an additional amount (up to $300) from your standard deduction.
A standard deduction means that $12,500 is removed from your annual income amount to calculate your annual income tax. This year you can potentially deduct an additional amount – up to $300 if you donate to a qualifying organization. Qualifying organizations are those that are religious, charitable, educational, scientific or literary in purpose — MPAC is a qualifying organization due to our 501c3 status — our Tax ID #95-4185142.
To put simply – the amount of taxable income you have might decrease by $300 due to your charitable contributions.