As tornado victims in the south and Midwest dig out from the wreckage of the violent weekend storm, tax authorities and nonprofit industry experts highlighted a valuable charitable deduction for small-dollar donors that’s slated to expire in weeks.
It’s a deduction they hope can spark more donations to all kinds of organizations working for the public good, if only more people took full advantage of it.
Right now, individuals can take the standard deduction — which is what most people do — but they can also claim an additional deduction of up to $300 for cash donations to charities this year. For married couples filing jointly, the deduction limit is $600 this year.
Those contributions can do good for the world, and also do good for the size of a taxpayers’ bill. In some instances, a $600 deduction could trim a household’s tax liability by approximately $150, one expert