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To boost donations to charities during the COVID-19 pandemic, the IRS is allowing extra charitable contribution deductions for 2020.

Taxpayers who claim the standard deduction will be able to deduct up to $300 in donations to registered charities without itemizing. According to the IRS, this change applies to 87% of taxpayers.

Taxpayers who itemize deductions on schedule A also benefit from increased limits on charitable contribution deductions. This year they can deduct up to 100% of their Adjusted Gross Income (previously limited to 60%).

How to prepare for these changes?

• Check if the charity is registered with the IRS Tax Exempt Organization Search (TEOS) tool

• Get your paperwork in order

  • Confirmation letter from the organization

  • Cancelled check or a receipt from the organization

• There’s still time to make donations!

  • Make donations to qualifying charities until December 31st, 2020.

  • Be sure to save the documents needed (see above)

Please consult your own tax advisor for information about your specific tax situation. If you need a tax advisor, connect with Accountress