Number of the Day Shows Time Left on Donation Tax Break
Our take on the most relevant or interesting figure in personal finance today
That’s how many days you have left to take advantage of a special pandemic tax provision encouraging people to give a little more during this tough time.
This year, unlike a normal year, taxpayers who take the standard tax deduction can deduct up to $300 in cash donations made to qualified charities by Dec. 31. That $300 translates into 2020 tax savings by lowering both adjusted gross income (AGI) and taxable income.
Normally taxpayers can only deduct charitable contributions if they itemize their deductions rather than use the simpler and far more popular standard deduction. But the CARES Act relief bill passed earlier this year changed the rules for 2020 in order to incentivize charitable giving during the COVID-19 pandemic. It’s just one reason why this year is a particularly good year to make tax-deductible donations.
Only monetary donations made with cash, check, credit card, or debit card will count toward this special tax deduction. Donating household items or property will not. To make sure your donation qualifies, see the eligible organization list on the IRS website.