Planning for Life

Take Advantage of One-Time Charitable Tax Deduction Before End of Year

Posted by Harry S. Margolis on November 25, 2020

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By Harry S. Margolis

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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:

Related Articles:

How Much Should You Give to Charity? When? Which Charities?

Should There Be a Tax on Just 2,000 Estates Each Year?

Topics: charitable giving

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