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February 8, 2021
Question

the standard deduction is$27400, my total deductions are $27,700, can you tell me why the difference?

  • February 8, 2021
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    1 reply

    February 9, 2021

    Yes, look at line 10b of your Federal Form 1040.  You will see a deduction of $300.00

     

    Cash donations of up to $300 by December 31, 2020, are now deductible without having to itemize. 

     

    The Coronavirus Aid, Relief, and Economic Security Act includes several temporary tax law changes to help charities. This includes the special $300 deduction designed especially for people who choose to take the standard deduction, rather than itemizing their deductions.

     

    This change allows individual taxpayers to claim a deduction of up to $300 for cash donations made to charity during 2020. This deduction lowers both adjusted gross income and taxable income – translating into tax savings for those making donations to qualifying tax-exempt organizations.

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