Did you know? As part of the CARES Act new legislation passed in 2020, tax filers who will claim the standard deduction in 2020 (those not itemizing on Schedule A) may now claim a deduction of up to $300.00 for gifts made to tax-exempt charities. This deduction is characterized as “above the line”, meaning that it will decrease filers’ adjusted gross income.
The deduction may only be claimed for 2020 cash contributions, not in-kind donations, such as clothing donated to Goodwill or pet food to an animal shelter. In addition, tax filers who will itemize their 2020 deductions on Schedule A may now claim up to 100% of their charitable deductions (up from 60%). Filers in this category should consider consulting an accountant or tax advisor regarding the specifics of how this change will affect their tax liability. You can access additional details regarding this legislation here.
If you are able to give during this time, there are several charitable organizations in need right now. These organizations are also great resources if you are a veteran in need.
Here are a few COVID-19 assistance programs targeting veterans: