The new law extends and improves charitable donation tax breaks. For 2020, individuals who don’t itemize deductions could take up to a $300 above-the-line deduction for cash contributions to qualified charitable organizations. The Consolidated Appropriations Act (CAA), which was signed on Dec. 27, 2020, extends this deduction through 2021. The law increases it to $600 on a tax return filed jointly by a married couple (the deduction remains at $300 for other taxpayers). Taxpayers who overstate their cash contributions when claiming this deduction are subject to a 50% penalty (previously it was 20%). Call or visit our website for more information! www.mjscpa.com/
