The IRS extended the tax deadline to May 17, which probably puts many people at ease. Still, it is a good idea to get your taxes done as soon as you can.
Did you know that some of the best credits and deductions required taxpayers to take action before Dec. 31? Don’t panic, though! Others can be used right up until taxes are due, and we are here to tell you about your options.
Cheapism.com found a host of 2020 deductions and credits to choose from. Continue reading to find out what they are!
31. Standard Deduction IRS
When the Tax Cuts and Jobs Act was passed in 2017, it almost doubled the standard deduction in 2018. It jumped from $9,350 to $18,000 for those filing as head of household.
In 2019 it raised again to $18,350 for the head of household. Then for 2020, the amount is being raised again to $18,650. Married people filing jointly increased also, going from $24,400 to $24,800.
However, many helpful credits and deductions were eliminated, including the personal exemption, which was $4,050 in 2017.
30. Charitable Deductions
Higher standard deductions make it challenging to put together enough charitable deductions worth itemizing. This year, however, you have the option to take a $300 above-the-line deduction for cash contributions to IRS-approved charities.
That’s because of a temporary COVID-19 tax relief measure, the CARES Act. If you would prefer to itemize, that is still possible.
Unfortunately, it is too late to make charitable donations for 2020. But Kibler suggests tracking down receipts for donations made throughout the year, especially of cash or goods.
Deductible expenses include eligible nonprofits, religious organizations, and government organizations (such as schools or public libraries).