The new, massive stimulus bill enacted into law on December 27, 2020, contains eight new tax breaks designed to help the non-business taxpayer.
None of these tax breaks are earthshaking by themselves, but together they add up to a nice tax present for COVID-weary Americans.
1. Enlarged Universal Charitable Contribution Tax Deduction
Ordinarily, charitable contributions are deductible only if you itemize your personal deductions on IRS Schedule A instead of taking the standard deduction.
In the past, about 30 percent of taxpayers itemized. Today, only about 10 percent itemize because the Tax Cuts and Jobs Act roughly doubled the standard deduction.
Thus, today the vast majority of individual taxpayers don’t get any tax benefit from charitable contributions.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act attempted to ameliorate this state of affairs and thereby help struggling charities that rely on donations. ... Log in to view full article.