It is a good time of the year to think about charitable donations for 2020. Since tax season is right around the corner, it is wise to itemize as many tax deductions as possible before the end of the year. Itemizing tax deductions means that you can decrease your taxable income when filing your federal income tax returns.
For those who pay taxes and don’t itemize deductions, there is still the option to make a charitable donation. These donations can be cash, check, credit card, debit card, or food donations. For those who don’t itemize, the charitable deduction a cash donation can be deducted up to $300. For those that itemize, the CARES Act has suspended limits to the amount of charitable donations. According to the IRS, there is a temporary increased limit to food donation contributions. Any donation can make a change to someone’s life. Not only does it help your taxes, but it can help someone who cannot provide for himself or herself.
You still have time to donate and make a difference. If you want to know more information about possible deductions and charitable donations, please contact Lakeesha Browne, CPA. This information was brought to you by IRS COVID Tax Tip 2020-162, which was posted on November 30, 2020.
“Get ready to file taxes: What to do before the tax year ends.” IRS, www.irs.gov/newsroom/get-ready-to-file-taxes-what-to-do-before-the-tax-year-ends. Accessed 2 Dec. 2020.