02/03/2021
Itemizing deductions
The Tax Cuts and Jobs Act in 2017 temporarily increased the standard deduction amounts across all filing statuses through 2025. For the 2020 tax year the standard deduction for single taxpayers is $12,400 and $24,800 for married taxpayers filing jointly. As a result, fewer taxpayers itemize.
Depending on your circumstances, however, it might be worthwhile to review potential itemized deductions. If they add up to more than the standard deduction, you could benefit. Consider unreimbursed medical expenses; interest expenses for mortgages up to certain limits; home equity debt; charitable contributions; and state, local and property taxes. Check in with your tax professional and visit irs.gov for details.
A special note about deductions for charitable giving: CARES Act provisions will benefit many taxpayers.
Non-itemizers can deduct up to $300 in cash donations that were made to qualifying charities before Dec. 31, 2020.
For itemizers, the usual 60% of AGI limit for cash donations is waived for the 2020 tax year.