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Tax Year 2020 Charity Deduction Change

Typically taxpayers can only deduct charity donations if they itemize their deductions on a Schedule A. Due to the tax law changes from a few years ago, many people do not qualify to itemize their deductions and instead take the standard deduction. By taking the standard deduction, you do not get to deduct your charity donations. The IRS has changed that to encourage people to donate money to charity.

So on your 2020 tax return, you can now deduct up to $300 of charity donations if you do not itemize your deductions on a Schedule A. If you do itemize your deductions then you are not subject to the $300 limitation.

If you do not itemize, any donations above the $300 cannot be carried forward to future years.

Please consult your tax advisor on all the above issues.

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