Special IRS $300 Charitable Donations tax deduction

Special $300 Charitable Donations tax deduction

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COVID-19 has been difficult on everyone including charities. In addition, fewer people have been claiming tax breaks for charitable giving since the Tax Cuts and Jobs Act went into effect in 2018 roughly doubling the standard deduction. The Cares Act added a new above the line deduction for 2020, a $300 cash charitable donation. The $300 is per tax filing return, therefore, the deduction is not double for joint filers. 

The donation must be made directly to the charity and be in cash, check, or credit card.  Stocks and other assets do not qualify. Generally, you can write off a donation of $250 or more if you have written acknowledgment from the charity. Print out or save the “thank you” email received from the organization.