The IRS has issued a draft of the 2020 Form 1040 that allows taxpayers to claim the new charitable contribution deduction. Under the CARES Act, taxpayers who don’t itemize their deductions can take a $300 “above-the-line” deduction for 2020 charitable contributions. There’s also a new line on the form to claim a “recovery rebate credit.” This credit can be claimed by taxpayers for amounts that they were owed under the Economic Impact Payment (EIP) program but didn’t receive. EIPs were created by the CARES Act and sent by the federal government to help mitigate the financial effects of COVID-19. Call or visit our website for more information! www.mjscpa.com/
