I hope you have managed to stay safe and well. We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.

Due to everything happening in the world this year, it’s easy to miss minute/small details. I would not blame anyone for not being aware of the $300 charitable deduction included in the CARES Act from earlier this year.  This deduction is specifically designed to encourage giving, while, providing a deduction for taxpayers that do not itemize (those take the standard deduction on the 1040). So as we close out 2020, I want to make you aware of this special tax deduction, that could allow you to do some good, while saving tax dollars at the same time!

As long as you make the donation to a qualifying charity, prior to the end of the year, the IRS will allow a taxpayer to deduct up to $300, which will be easily reported on the 1040 form for anyone who wishes to utilize the deduction. We encourage you to observe the practice of keeping good records for all donations.  Special record keeping laws exist in the Internal Revenue Code, and apply to any taxpayer that claims a deduction for a charitable donation. Like obtaining an acknowledgement, and retaining a copy of the cancelled check.

Also, the CARES Act increased the contribution limits for corporations, as well as businesses that donate food to food banks, and other eligible charities. You can find more guidance at IRS.gov/coronavirus. If you need any assistance filing returns, or navigating the tax laws that may apply to you and your situation, we would be happy to help. Please feel free to contact us https://brtaxaccountant.com/