These are tough times for many local nonprofits whose services have been severely impacted during the coronavirus pandemic. Fundraising events have been canceled or postponed, leaving nonprofits scrambling for funds needed to keep critical services available to the most vulnerable in our community.
There is some good news,though. The Stimulus Bill adds a bonus that just may be the incentive taxpayers need to help nonprofits.
Beginning with 2020 tax returns, a new above-the-line charitable tax deduction will be in place. Taxpayers will be able to claim up to $300 in cash contributions to charity as a deduction without itemizing.
Since the 2018 tax overhaul, the standard deduction increased and lowered taxes for many Americans, but it also reduced the attractiveness of the charitable tax deductions. For 2020, the standard deduction is $12,400 for individuals or $24,800 for married couples filing jointly. You can only claim the charitable deduction if you itemize on your tax return, and a higher standard deduction makes that less appealing. The new provision allows taxpayers who don't itemize to deduct up to $300 worth of charitable donations.
The Greater Green Valley community is home to numerous nonprofits who could benefit now from a $300 donation. Any qualified charity counts, from your local food bank, your favorite animal shelter, nonprofit senior services, and other charities that are lifelines to so many.