Find out if your 2020 donations are tax deductible with this easy to use tool!
One of the major sources of confusion for taxpayers that we run into is the tax deductibility of charitable contributions that they make throughout the year. This will be even more prevalent with the implementation of a $300 above the line deduction that taxpayers will be able to take due to the CARES Act passed in March. Normally a deduction that can only be taken if a taxpayer itemizes deductions on a Schedule A, all taxpayers will be able to get up to a $300 deduction on their 2020 tax return for making CASH contributions to eligible tax-exempt organizations.
The “eligible tax-exempt organizations” is key to understanding if your donation will qualify for this deduction or not. Many taxpayers are under the impression that any donation qualifies for the deduction, however, making a contribution to a “GoFundMe” page or a local family does not usually qualify for tax purposes.
Generally the organization that you are donating to should know whether they qualify, however, you can also search for eligible organizations on the IRS’s website. You can search by name, or just by city and state for a list of all eligible organizations in your town.