You have $300 extra tax-deductible dollars this year to donate to charities!
First let’s answer: What is the CARES Act? The CARES Act (ie the Coronovirus Aid, Relief, and Economic Security Act) was created in order to provide “fast and direct economic assistance for American workers, families, and small businesses, and preserve jobs for our American industries” (Source: US Treasury).
While there has definitely been a lot of debate and concern over how effective the CARES Act has been, there is at least one positive aspect. The CARES Act has created a temporary tax benefit where there is “above-the-line” deduction for individuals donating up to $300 or up to $600 for married joint-filing households (Source: 501c3 Foundation Group).
So...what does this mean exactly? It means that if you are not itemizing your charitable contributions (i.e. singularly listing out each donation) you can claim this new deduction on your 2020 tax return. (Source: Fidelity).
You may be asking, “But Provide Now is a gifts-in-kind registry. Can I claim my donation on my 2020 tax return?” And the answer is: ABSOLUTELY! You (the donor) gave Provide Now funds (cash contributions) and 100% of the funds you gave were used to purchase an item(s) on your behalf. You do not need to worry about calculating depreciation for the item in your 2020 tax return. This universal deduction is only valid for your 2020 taxes while the CARES Act is in place under the current Presidency.
Even if an online tax filing or software system, such as TurboTax, tells you that the standard deduction will get you the highest tax return, you can STILL deduct this non-itemized $300 on top of that.
Don’t Let Your Tax Credit Go To Waste...
DONATE NOW! :)
Provide Now is not an accounting firm nor claims to be an expert in this field. Before filing your 2020 taxes, be sure to consult with your tax or legal advisor regarding charitable giving or charitable deductions on your tax forms.