People have plenty of compelling reasons to donate money this Giving Tuesday if they can afford it, but a handy tax code tweak enacted earlier this year provides one more incentive.
The so-called “universal charitable deduction” allows non-itemizers to claim a tax break of up to $300 when they file their taxes in 2021.
Let’s break that down.
Charitable donations are tax deductible, but taxpayers can only claim the deduction on their federal income taxes if they’re itemize the expenses that are eligible for deductions. Along with charitable donations, these expenses include medical expenses, mortgage interest and state and local taxes (up to $10,000).
But it only makes…