Tax Benefits of the CARES Act
As you may have heard, the recently passed CARES (Coronavirus Aid, Relief, and Economic Security) Act expanded charitable giving incentives to encourage donations to nonprofit organizations in 2020. We would like to highlight a couple ways this may affect your giving.
* If you take a standard deduction, you are able to make a charitable deduction of up to $300 for a cash donation ($600 for married couples filing jointly). You do not need to itemize to receive this deduction.
* If you itemize your deductions, the CARES Act allows for cash contributions to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.
* Corporations that make charitable gifts can now give 25% of their taxable income, up from the previous limit of 10%.
Please consult your tax advisor for clarification on how these changes may apply to your circumstances.