by Bridget Odorczyk, Staff Accountant

Over the last few years the standard deduction for individuals has drastically increased, making it more and more difficult to itemize on their income tax returns. This, in turn, has left people feeling less incentive for charitable giving.

In 2020 non-profits are struggling more than ever to find funding.  Non-profits are not able to host large fundraisers, and donors feel the impact of COVID-19 with less expendable cash.  These organizations are struggling now more than ever.

The IRS is hoping to provide some additional incentive for taxpayers to continue their charitable giving, even in these difficult times. In 2020 the IRS is reminding non-itemizers that they may be able to claim an additional above the line deduction, up to $300, for their charitable contributions made to qualifying organizations in 2020.

What’s the catch? The charitable contributions must be paid with cash, credit card, ETF, check or payroll deduction; contributions of property do not quality.   Also, charitable contributions made to donor advised funds, supporting organizations or non-operating private foundations – even if made with cash, do not qualify for this above the line deduction.   It should also be noted that this is only for qualified donations made in 2020.  You are not able to claim this deduction for contribution carryovers from prior years.

For more information about tax preparation and charitable deductions, contact our tax professionals at 315.424.1120 or info@gsacpas.com.

ABOUT GROSSMAN ST. AMOUR CPAs PLLC
Grossman St. Amour CPAs PLLC virtual doors are open and we are assisting clients with audit, accounting, and tax issues as well as matters relating to COVID-19.  As a certified public accounting firm located in central New York, Grossman St. Amour CPAs has been in business for 63 years.

The firm provides businesses and individuals with accounting, audit, taxation, business planning and valuation, financial planning, investment consulting, and fraud examination and deterrence services.  For more information about how Grossman St. Amour CPAs PLLC can be of service to you, contact our professionals.

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