New laws can affect your 2020 tax returns
SAN DIEGO (KUSI) – Recent federal laws have changed the amount San Diego residents can deduct when filing taxes for 2020.
Among those changes are the new $300 deduction for individuals generous enough to have donated in 2020 and more tax relief for certain cash donations.
As the San Diego Foundation engages often with donors, their VP Brian Zumbano joined KUSI to share insider tips on how San Diegans can deftly navigate the new laws this tax season.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is the reason Americans can deduct up to $300 from their 2020 taxes.
The CARES Act dictates that these donations are above-the-line deductions, meaning taxpayers don’t have to itemize in order to claim that deduction.
What’s more, the deduction lowers both adjusted gross income and your taxable income.
Typically, only 60% of your charitable donations are deductible, but the CARES Act makes 100% of your donations deductible this year.