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Did you know that you can deduct up to $300 of charitable contributions even if you don’t itemize your taxes?
In plain English, this means that the small contributions you make to charity can actually help you pay less in taxes, as long as within a certain limit.
Let’s say you donated a bag of clothes or put $100 in the collection tray at church. Painfully, those using the standard deduction (and that is most of us) weren’t able to write off your contribution unless we had large deductions, well over $10,000 for single taxpayers or $24,000 for joint taxpayers . But this year you can deduct up to $300 of such contributions even if you are not itemizing your deductions.
We’re not giving tax advice – check with your accountant or tax preparer for details about how this may apply specifically to you– but it may be a good idea to dig up those receipts for any small charitable contributions made in 2020 before you file your tax return.
We welcome any questions on this or other financial topics.
Happy holidays!