2020 Charitable Contributions

TL:dr:: New tax law lets everyone deduct $300 in donations. This will really help i3 and other small charities. Donate if you can.

In 2018, the Tax Cut and Jobs Act was enacted. This made things harder for an awful lot of small charities, like i3. This was because the changes included doubling the standard deduction, which generally had a positive effect on most people’s tax burdens, but significantly reduced the likelihood of people of itemizing deductions. And since there aren’t any tax benefits for donating to charities when you don’t itemize deductions, donations to small charities dropped by quite a bit.

However, as a response to the Covid-19 emergency, the CARES Act was enacted. Part of this law was a minor adjustment to the tax code that allows up to $300 in donations to a valid 501(c)3 to be deductible, even if you don’t itemize deductions. IRS has information about it here. Like other so-called “above the line” deductions, you’ll be able to report this deduction directly on the face of your 1040. But this deduction is only good for 2020, so to get the deduction, the donation has to happen by midnight on 31 December.

Especially in these challenging times, small charities like i3 are really struggling and your donation could really help. So if you can afford it, during this holiday season, you can look forward to a small benefit for yourself.

Thank you for all of your support and Happy Holidays from all of us at i3Detroit. (And if you want to donate to us, you can do so here.)

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply