IRS Commissioner Chuck Rettig recently issued a reminder that the IRS has “a new provision that allows for up to $300* in cash donations to qualifying organizations to be deducted from income. We encourage people to explore this option to help deserving tax-exempt organizations – and the people and causes they serve.”
Ordinarily, you can only deduct charitable contributions on your tax return if you itemize your deductions. This special deduction is an “above-the-line” deduction, which means that it reduces your taxable income, even before you apply the standard or itemized deduction.
Cash donations of up to $300 made before December 31, 2020, are now deductible when people file their taxes in 2021.
If you still haven’t filed your 2019 return, there is still time to get it done before 2020 is over! Visit our website at https://www.clergytaxnet.com/services/clergy-tax-preparation/ for more information.
Clergy Financial Resources
“Be sure to remember your church or the North Alabama United Methodist Foundation with your December gift.”
ELIGIBLE INDIVIDUAL
An individual eligible to claim the deduction is any individual who does not elect to itemize deductions for 2020 (Sec. 62(f)(1)). The $300 limit per filing unit applies regardless of filing status.