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.clergyfinancial.com/services/clergy-tax-preparation/ for more information.
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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
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