Here's How the CARES Act Changed Charitable Contributions for 2020's Taxes
The COVID-19 pandemic made 2020 an unprecedented year in a vast number of ways. The greater part of society shut down to minimize the spread of the virus, which had an undeniably large impact on the economy. Pandemic-related issues left many people without jobs and many businesses needing assistance to stay afloat. As a result, many of us who were able to do so made charitable donations to help out. The U.S. government also stepped in to provide aid, in part via the $2.2 trillion economic stimulus bill known as the CARES Act.
The CARES Act changed tax deductions for charitable donations in 2020, partly to encourage more giving in a time of need. Were you one of the many who made this type of donation? Now that it's tax time again, it's important to understand the various changes so you can file for tax deductions in relation to your charitable donations.