You can deduct charitable donations even if you do not itemize

[Kenia Crevoisier]

Hi BP members. 

I am CPA that specializes I real estate and international tax. I am also an aspiring real estate investor I hope to connect with other RE investors and share some of my tax knowledge with you all.

 I’d like to share with you some great news regarding charitable donations that you make in 2020. 

• A measure in the federal coronavirus relief bill grants taxpayers an above-the-line deduction for up to $300 in charitable donations starting in 2020.
• Normally, you have to itemize deductions to get a tax write-off for charitable donations. In this case, the break is available to people who claim the standard deduction, which is $12,400 for singles or $24,800 for married-filing jointly in 2020.

The House passed the $2 trillion coronavirus relief bill last week.

In particular, legislators are calling for a “partial above the line deduction” for charitable contributions. This means that people who take the standard deduction — which is $12,400 for singles and $24,800 for married-filing-jointly in 2020 — can still write off up to $300 in donations.

This would take effect in 2020, so you’d claim the break when you file your 2020 return next spring.

Deductions reduce your taxable income based on your federal income tax bracket. That means the higher your bracket, the greater the savings.

I hope to make to make this one of my first regular tax tips here on BP. 

Let’s connect!