With the Tax Cuts and Jobs Act, the standard deduction was raised to $12,400 for tax year 2020. This means that certain taxpayers who used to give generously to charity to increase their deductions did not really see a benefit on their taxes – the standard deduction was just so high that itemizing benefits fewer people.
Congress passed the CARES Act and now among other benefits, taxpayers who donate to charity and choose to take the standard deduction can take up to $300 above-the-line deduction for charitable donations.
Don’t forget to mention charitable donations to your tax preparer when completing your 2020 tax returns. As always, if you have any question you can call Heritage Tax Services at 513-900-9513.