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New Charitable Donation Deductions for 2020

Charity

One very little discussed part of the first stimulus bill:

If you don’t itemize deductions, you can still deduct $300 of charitable CASH donations. This means that you should save any receipts for CASH donations to non-profits, or churches. When the IRS speaks of cash donations, they mean any donation made by cash, check, or card, but NOT ITEMS that you might take to Goodwill. Additionally, since 2019 Arizona allowed you to take 25% of ALL charitable donations (both cash and donated items) if you don’t itemize.

Consider this a bonus: you get to take the full standard deduction plus a portion of your charitable donations if you keep your receipts.

I know that times are very difficult for many of us. However, if you do give to charity, keep the receipts, and use them on your taxes next year even if you don’t itemize.

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