A Quick Look at the New Charitable Deduction

by | Sep 17, 2020 | COVID-19, Tax and Accounting Desk

As the COVID-19 pandemic continues, various not-for-profit organizations have experienced a decline in charitable contributions from supporters, and Congress responded with a new provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act – Public Law (P.L.) 116-136.

This provision aims to provide relief to charitable organizations. Under Section 2204, the provision allows for “a tax deduction for charitable contributions in 2020 up to $300 for taxpayers who do not itemize their tax deductions.” This is intended to encourage taxpayers to make contributions to charitable organizations by allowing a tax benefit even for those who do not itemize but instead use the standard deduction.

The Journal of Accountancy recently published an article providing more details about P.L. 116-136, which includes:

  • Qualifying for the deduction
  • Eligible individual
  • Qualified charitable contribution
  • Qualified charitable organization
  • Other considerations

For more information and resources about COVID-19, visit our website with the latest updates: www.pkftexas.com/COVID-19.

To learn more about how the faces of PKF Texas serve the not-for-profit sector, visit www.pkftexas.com/NotForProfit.

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