Special $300 Tax Deduction for 2020 Charitable Cause

Posts that have nothing to do with the Model T. You can post here or OT posts will be moved here.
Forum rules
If you need help logging in, or have question about how something works, use the Support forum located here Support Forum
Complete set of Forum Rules Forum Rules

Topic author
hossross
Posts: 1
Joined: Fri Dec 04, 2020 8:16 pm
First Name: HAROLD
Last Name: Ross
* REQUIRED* Type and Year of Model Ts owned: 1915 Roadster
Location: Shelby Twp, MI
MTFCA Number: 27433
MTFCI Number: 22125
Board Member Since: 2008

Special $300 Tax Deduction for 2020 Charitable Cause

Post by hossross » Fri Dec 04, 2020 10:36 pm

Many of you may not know that the CARES Act, the huge spending bill passed by Congress in March to provide Coronavirus Aid, ALSO allows for a $300 tax deduction on your 2020 Taxes, IF you only claim the STANDARD DEDUCTION. (ie: you get both this charity deduction and the standard deduction. Usually if you don't itemized your deductions. there are no additional deductions if one selects the standard deduction. This deduction is special as explained below. In short, with the CARES Act, if you donate up to $300 in cash to a qualified organization, your adjusted gross income will be reduced up to $300. For those who file itemized no change from typical rules.

I want to encourage everyone to consider using this special case to donate to your choice of charities. Because it is probably a 1 time scenario, I would like you to consider supporting the Model T Ford Clubs. MTFCAmerica has the museum where people can learn, MTFCInternational (sister club) has a scholarship fund. Both are to create interest in the Model T and continue the enthusiasm for the car and its history. I plan on donating to both Model T Clubs, as they both do great work, and because many of the large meets have been cancelled due to Covid Pandemic rules, raising donations has been difficult, not to mention that many are not in a position to donate to a cause they may typically support.

The requirements are well defined, it must be a cash ($) donation, (no goods or services) Maximum of $300/filing (individual or joint), it must be given before December 31, 2020. Confirm that your donation recipient choice is a Section 501(c)(3). I am not a tax consultant, I don't even play one on TV. The donated cash amount is directly deducted from the AGI “above the line”, so you get more tax benefit than if it were a typical itemized deduction.

A qualified charitable organization is formed under IRS Section 501(c)(3). There are other tax-exempt organizations formed under Section 501(c), but only those formed under 501(c)(3) are tax exempt. There are two categories: public charities and private foundations. Only donations to these organizations are considered qualified charitable contributions.