The holidays are a great time to give back to people in need, especially if you are in a position to do so. If you are thinking about giving back this holiday season, you’re in luck, you can now get a tax deduction for it.
The CARES Act, which was signed into law this spring, included a “partial above the line deduction for charitable contributions. This allows people who take the standard deduction — which is $12,400 for single filers and $24,800 for married-filing-jointly in 2020 — to claim a deduction of up to $300 in donations. You’d claim this tax break when you file your 2020 return next spring”, according to the IRS.
Accordingly, fewer people also claimed a tax break for donations: 14.8 million returns claimed a charitable deduction in 2018, down from 37.9 million in 2017.
So what do you do once you donate? If you expect to take a write-off for the cash you’re giving to your favorite charity, make sure to keep the receipts for your records. According to the IRS website, You typically can write off a donation of $250 or more if you have a written receipt or email of proof.
At Sherman Wealth, we are very passionate about giving back to the community and supporting our local charities, especially around the holidays when we are appreciating all we are thankful for. We encourage those who are in a position to give back to find local charities to support and do as much as they can. If you have any questions about charitable contribution deductions or your portfolio, please contact us at info@shermanwealth.com or set up a free 30-minute consultation here.
Below are some local charities we are passionate about:
Nourish Now, No Kid Hungry, Manna Food Center, Jewish Federation of Greater Washington, So What Else, Montgomery County Coalition for the Homeless, JCC, and A Wider Circle
