CARES Act $300 Above-the-Line Deduction

Discussion in 'Sound Off' started by scubajay, Apr 7, 2020.

  1. scubajay

    scubajay

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    The CARES Act expands tax deductions for charitable giving. If you take the standard deduction on your 2020 tax return (the one that you'll file in 2021), you can claim a brand new "above-the-line" deduction of up to $300 for cash donations to charity you make this year.

    Normally, you have to itemize on Schedule A to get a tax break for charitable donations. In this case, though, it's the other way around—if you itemize, you can't take this new deduction.

    If you know of a deserving charity, please list it for folks that are so inclined to make a donation.

    I will start:
    The Army Emergency Relief (AER). The AER "Helps the Army Take Care of Its Own" by assisting Soldiers, retirees and survivors with emergency assistance in their time of need. Over 90% of donated funds go directly to Soldiers and their families.

    I know there are many others... Please list them in this thread. Thank you.
     
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  2. Petronius

    Petronius Premium Member

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    Do you need proof like cancelled checks or receipts?
     

  3. scubajay

    scubajay

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    I'm not a tax expert, but I would assume that a donation in this manner would require the same documentation that any other donation that is listed on your tax return.
     
  4. Petronius

    Petronius Premium Member

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    You could always say you lost them if you were asked.
     
  5. scubajay

    scubajay

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    It's unclear to me the direction you want to take this thread. I'm just an engineer/physicist and don't have insight on the inner machinations on how the tax law applies. I suppose you could say your dog ate it... I don't know which excuses the IRS will accept.

    I just thought it pertinent to inquire about various charities that might benefit from this inclusion in the CARES Act.
     
  6. bucko12pt

    bucko12pt

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    If you’re going to try to circumvent the rules by saying you lost the receipt, you may as well just skip the contribution, but take the $300 reduction to AGI anyway. After all, what are the odds of getting audited for that?:rolleyes:
     
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  7. Petronius

    Petronius Premium Member

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    I like that better. Yeah, that's it, the dog ate it.
     
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  8. scubajay

    scubajay

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    December is the last month to make a donation for the new above-the-line deduction.

    To reiterate: The CARES Act expands tax deductions for charitable giving. If you take the standard deduction on your 2020 tax return (the one that you'll file in 2021), you can claim a brand new "above-the-line" deduction of up to $300 for cash donations to charity you make this year.

    Normally, you have to itemize on Schedule A to get a tax break for charitable donations. In this case, though, it's the other way around—if you itemize, you can't take this new deduction.

    If you are in a position to help, and you don't itemize on your taxes (2020 Standard Deduction - $12,400 for single taxpayers. $12,400 for married taxpayers filing separately. $18,650 for heads of households. $24,800 for married taxpayers filing jointly), this is a great way to assist those in need.
     
  9. Far Beyond Driven

    Far Beyond Driven

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    World Renew through the Christian Reformed Church. We donate a goat and a latrine every year.

    Best Pals Animal Rescue on honor of Sam, the most polite cat ever. Note, cats do not come with their own box.

    Tyson's Place, that takes in animals when their hoomans are too old or unhealthy to provide for them.

    IMAG0314.jpg
     
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  10. piketroller

    piketroller

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    I’m guessing the Human Fund is your charity of choice when it comes to your own wallet.

    The Human Fund - Money for People
     
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  11. Nitro225Optimax

    Nitro225Optimax

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    Wow. Cheating the government out of like ~$40-45...that’s like...stealing a candy bar from a gas station and saying it was only a candy bar.

    Integrity is what you do when no one is looking.




    Sent from my iPhone using Michigan Sportsman
     
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  12. Nitro225Optimax

    Nitro225Optimax

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    Tax evasion is stupid . The government is going to spend that money whether you pay it or not. And you’re still responsible for the tab.


    Sent from my iPhone using Michigan Sportsman
     
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  13. capper

    capper Premium Member

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    Thanks for the heads up Jay.
    The “Salvation Army” got my donations. After the big flood in Fairbanks,Ak in 1967 - they were the only ones that came around with a pickup full of food for folks and said to please, just take what you need. I never forgot that and they get some of my money every year.
     
  14. FREEPOP

    FREEPOP

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    ....and costly
     
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  15. Lund Explorer

    Lund Explorer

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    Please educate yourself. The simple act of taking an additional write off for your benefit isn't tax evasion.

    Tax Avoidance—An action taken to lessen tax liability and maximize after-tax income.
    Tax Evasion—The failure to pay or a deliberate underpayment of taxes. underground economy—Money-making activities that people don’t report to the government, including both illegal and legal activities.


    https://apps.irs.gov/app/understandingTaxes/whys/thm01/les03/media/ws_ans_thm01_les03.pdf