It's always a good time to give to charity, but did you know that Congress has made it an even a better time now, at least for the first $300? Since the increase in the standard income tax deduction in 2018, only 11 percent of taxpayers itemize deductions, so fewer taxpayers take advantage of the charitable deduction.
Why it's a good idea to prioritize charitable giving before the end of 2020
But to both encourage and reward giving in this difficult year, as part of the CARES Act, Congress created a one-time $300 charitable deduction for people who do not itemize on their tax returns. To qualify, you must give cash (including paying by check or credit card) to a 501(c)(3) charity. Gifts of goods or stock do not qualify.
Can a married couple deduct $600?
One thing that's not clear is whether a married couple filing jointly can deduct $600. While it's logical that they should be able to do so, the IRS has not clarified this yet. With just six weeks left in the year, times a wasting.
$300 can make a tremendous impact
While $300 may not seem like much, it can make a big difference to smaller charities. And a lot of $300 gifts can add up.
Here are some places you might take a look at to determine which charity you would like to support before the end of the year:
- Give Directly
- Giving Compass
- Community Foundation Locator
- Philanthropy Together
- Charity Navigator
- Charity Watch
- Kristof Impact