“To say the 2020 year has been one we’ll never forget is an understatement and each one of us has had to endure many different types of challenges.
A Challenging year
The holiday season is usually marked by lots of volunteer opportunities to be able to give back with our time and it also provides opportunities to donate money or goods to the less fortunate than us.
Due to the pandemic, there has been some obstacles to volunteering opportunities and how these would be able to work during the current times. Therefore, many people are turning to donating money or goods this year instead of their time.
How the CARES act supports your donation
If you have been making donations or planning on making some this holiday season, make sure you take advantage of the additional donation deduction when filing your 2020 tax return.
When putting together the Coronavirus Aid, Relief, and Economic Security (CARES) Act (which passed earlier this year), Congress included a provision to encourage individuals to support charitable organizations throughout the United States that are seeing a decline in donations due to the pandemic.
What if I don't itemize?
Section 2104 of the CARES Act allows individuals who do not itemize deductions to deduct up to $300 of qualified charitable contributions made during the year. Previously, if you take the standard deduction on your tax return, you were not able to take any additional deductions for donations made during the year.
Here is an article from the Journal of Accountancy that explains this deduction in more detail.
So make sure you keep those receipts of donations made to the charities in our area to continue doing great work to ensure those in need get assistance during these difficult times and provide a glimmer of hope during the holiday season.
Valeria S. Giefer-Fossa
C.P.A. | Manager
Schleier Wenner & Co