New IRS Act re: donations to charity

Did you know?

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which passed on March 27, 2020, allows donations to charities — even if you don’t itemize deductions!

A new “universal deduction” allows for a charitable deduction of up to $300 per individual ($600 for married couples) on your tax return, says Tom Bullaro, director of Our Lady’s Pantry.

“This community has been so generous to Our Lady’s Pantry this year, allowing us to stay open despite COVID.  We wanted to be sure you knew about this little known section of the CARES Act.

“This is all the information we have at this time,” Bullaro says.  “We are told that a new IRS Form 1040 for 2020 will be finalized in mid-December.  Presumably, there will be a separate line item for this new charitable deduction.”

The CARES Act further notes that if you do itemize, you can deduct cash contributions of up to 100% of your adjusted gross income for 2020 (it’s normally limited to 60%).

For further details, please visit the IRS Web site at:  https://www.irs.gov/newsroom/how-the-cares-act-changes-deducting-charitable-contributions or see a local tax consultant.