A new tax provision could help you save money by donating this Giving Tuesday.
A special tax law change made in 2020 will allow taxpayers to deduct up to $300 for cash donations made to qualifying charities.
"Our nation's charities are struggling to help those suffering from COVID-19, and many deserving organizations can use all the help they can get," said IRS Commissioner Chuck Rettig. "The IRS reminds people there's a new provision that allows for up to $300 in cash donations to qualifying organizations to be deducted from income. We encourage people to explore this option to help deserving tax-exempt organizations - and the people and causes they serve."
Most people take the standard deduction for charitable giving when filing their taxes. This new provision will allow taxpayers to claim an "above-the-line" deduction of up to $300 for cash donations made to charities in 2020.
That will lower both your adjusted gross income and taxable income, which should translate into tax savings.
Be sure to check with the IRS to make sure the organization you are donating to is eligible for this deduction.