Brand new ABOVE THE LINE deduction for Charitable Contributions! The new tax law TCJA effective a few years ago, doubled everyone’s standard deduction reducing the number of taxpayers that continue to itemize their deductions. Now, charitable contributions are deductible even if you itemize – $300 can be claimed as a deduction on your tax return in tax year 2020. If you take that amount times your marginal tax rate of 22% federal and 5% state (estimated) you create tax savings of ($300 X 27%) or $81.
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