A $300 Pandemic-Related Tax Deduction is Available, but Only This Year
Tax breaks for individuals who've made charitable contributions have been few and far between in recent years. But, if you donated to the COVID-19 cause in 2020, you could be due something in return.
According to Huffington Post, when filing your 2020 tax return, it's possible to write off up to $300 in charitable contributions under the CARES act that went through back in March as part of the coronavirus stimulus plan.
And you can access this deduction without having to itemize your taxes. BONUS! Itemizing takes long enough.
So, if you donated to any 501(c)(3) charity this year, here's how the $300 pandemic-related deduction will work:
- You can deduct only cash donations. So if you donated things like food, household goods or other non-monetary, it won't count. *Pro Tip (according to Huffington Post): You may be able to write off the goods that you donated if you saved receipts and remember to itemize.
- The $300 is an 'above-the-line' deduction.
- Your taxable income will be reduced by $300.
Because the CARES act expires on December 31st, this COVID-19 charitable contribution deduction is only valid for 2020, and will reportedly not be available when filing your taxes for 2021.
There are plenty more details regarding this deduction, and because I'm not an accountant and have limited economic skills (lol), I'll direct you to the full article on HuffPost.com that you can dissect and share whoever does your taxes.
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