Did you know the CARES Act might change how you deduct charitable contributions for 2020?
One of the changes to the tax law for 2020 under the CARES Act is that if you do not itemize, you may still be able to deduct $300 in charitable contributions. This is different than previous years and effectively increases the number of people who can take a deduction. For the purposes of this deduction, qualifying organizations are those that are religious, charitable, educational, scientific or literary in purpose. The law changed in this area due to the Coronavirus Aid, Relief, and Economic Security Act.
The CARES Act also temporarily suspends limits on charitable contributions and temporarily increases limits on contributions of food inventory. More information about these changes is available on IRS.gov.
To learn more about how the CARES Act might affect your specific tax situation, please go to the IRS website and read the full news release here.
Please note: This is for informational purposes only and not tax advice. Every situation is different, and we recommend that you reach out to your tax advisor and visit the IRS website prior to taking any action. King County may not provide tax advice.