Intuit Community Champion

Question

Cars Act above the line charitable donation

Forum|Forum|5 years ago
November 19, 2020
10 replies
47 views

Just for everyone's info, it seems the new above the line deduction is $300. Here is what the official doc. says, and here is link:

https://www.congress.gov/bill/116th-congress/senate-bill/3548/text?q=product+actualizaci%C3%B3n#toc-id8C6FDC26FDF745B9ABA7BC0B89F6B42F

SEC. 2104. ALLOWANCE OF PARTIAL ABOVE THE LINE DEDUCTION FOR CHARITABLE CONTRIBUTIONS.

(a) In General.—Section 62(a) of the Internal Revenue Code of 1986 is amended by inserting after paragraph (21) the following new paragraph:

“(22) CHARITABLE CONTRIBUTIONS.—In the case of taxable years beginning in 2020, the amount (not to exceed $300) of qualified charitable contributions made by an eligible taxpayer during the taxable year .”.

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Just-Lisa-Now-

Intuit Community Champion

Eligible taxpayer...so I guess a spouse isn't eligible?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

T

Terry53029

Author

Intuit Community Champion

Have to look at possibility of comparing MFS vs MFJ

itonewbie

Level 15

@Terry53029 wrote:
Have to look at possibility of comparing MFS vs MFJ

If we look at the above-the-line deduction for charitable contributions in isolation, that will likely not move the needle. In fact, filing MFS for just that would likely be disadvantageous, everything else being equal, when other tax effects as well as additional tax prep fees are taken into account.

---------------------------------------------------------------------------------Still an AllStar

itonewbie

Level 15

The JCT explanation of Sec. 62(f)(1) in relation to eligible individual, in the form of footnote (#76), is very clear the $300 limit is applicable to a tax-filing unit. In other words, it is the same whether the return is filed as MFJ or MFS.

Sec. 62(f)(1). The $300 limit applies to the tax-filing unit. Thus, for example, married taxpayers who file a joint return and do not elect to itemize deductions are allowed to deduct up to a total of $300 in qualified charitable contributions on the joint return.

---------------------------------------------------------------------------------Still an AllStar

abctax55

Level 15

@Terry53029 - What is this *Cars* Act you are referring to? I haven't done my tax refresher course yet; looks like I missed something. 🤣

HumanKind... Be Both

Just-Lisa-Now-

Intuit Community Champion

and it's cash only contributions, no in-kind donations.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

E

Ephesians3-14

Level 7

So, the idea is that if you are not itemizing, then you can deduct $300 above the line? I don't see a line item for that on Sched 1? Not in the software yet?

qbteachmt

Level 15

"I don't see a line item for that on Sched 1?"

1040, line 10b.

https://www.irs.gov/pub/irs-dft/f1040--dft.pdf

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