If you want to save a little money on your next tax bill while doing something good in 2020, you’re running out of time.
Earlier this year, a new law – the Coronavirus Aid, Relief and Economic Security (CARES) Act – temporarily suspended rules that don’t allow you to deduct charitable donations from your tax return unless you have any deductions specified.
In other words, it is over-the-line printing. Or as the IRS explains:
This means that the deduction will reduce both adjusted gross income and taxable income. This translates into tax savings for those who donate to qualified tax-exempt organizations.
For the purposes of a tax write-off, qualified charities are defined as those that are deemed tax-exempt by the IRS. For 2020, the donation limit will be temporarily suspended for people who submit their deductions.
To be eligible for these one-time exemptions from the charity write-off rules, the IRS is reminding you that you must make your donations to charity.