Charitable Contribution

[Dan]

Charitable Contribution - I see that effective for 2020 there is a new deduction up to $300 for a qualified charitable contribution as above-the-line deduction in calculating AGI without the taxpayer having to itemize deductions (1040-10b).  On Form 1040 is there anything that says a taxpayer is required to enter their total charitable deductions or just the $300 amount on 10b?

[David W Ristau CPA]

I've not read anything beyond the limit is $300 per return, so same limit amount single, married joint or head of household.

And that the deduction is only for cash type donations, not used goods to charity.

[jklcpa]

On 12/17/2020 at 4:55 PM, Dan said:

Charitable Contribution - I see that effective for 2020 there is a new deduction up to $300 for a qualified charitable contribution as above-the-line deduction in calculating AGI without the taxpayer having to itemize deductions (1040-10b).  On Form 1040 is there anything that says a taxpayer is required to enter their total charitable deductions or just the $300 amount on 10b?

You enter up to $300 for MFJ, single, HH, and qual widower,  or up to $150 for MFS.  So if a joint couple gave only $125 in contributions, then that's all they get, not the full $300.  If they give $450, they'd enter only $300 on line 10b.
From the 1040 draft instructions:
 

Quote

Line 10b
If you don't itemize deductions on Schedule A (Form 1040), you (or you and your spouse if filing jointly) may be able to take a charitable deduction for cash contributions made in 2020.

Enter the total amount of your contributions on line 10b. Don't enter more than:
• $300 if single, head of household, or qualifying widow(er);
• $300 if married filing jointly; or
• $150 if married filing separately.

The contributions must be made to organizations that are religious, charitable, educational, scientific, or literary in purpose. See Pub. 526 for more information on the types of organizations that qualify. A deduction can't be taken for a contribution to an organization described in I.R.C. 509(a)(3) or for the establishment of a new, or maintenance of an existing, donor-advised fund. Also, contributions of noncash property and contributions carried forward from prior years don't qualify for this deduction. 

See the Instructions for Schedule A and Pub. 526 for more information on those types of contributions.

 

[Abby Normal]

$300 x 12% = $36 in tax savings, which I'll take but it's just crumbs. $3,000 would be a lot more useful, obviously.

 

[DANRVAN]

6 hours ago, Abby Normal said:

12% = $36 

And we get an extra 9% from state for a big night out on the town.