Tax Information Regarding Charitable Giving in 2020
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act increases tax deductions for charitable deductions for both individuals and corporations for the tax year 2020. To qualify for these special deductions, contributions must be made during tax year 2020. You may wish to consider the following provisions when determining your charitable giving this year.
- Individuals who do not itemize their tax deductions may take a new "above the line" charitable deduction of $300 per taxpayer ($600 for a married couple). An "above the line" deduction reduces a donor's adjusted gross income (AGI), and thereby reduces taxable income.
- Individuals who itemize may deduct donations up to 100% of their 2020 AGI, up from the previous limit of 60%.
- Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.
We appreciate your continued weekly contributions.
May God bless you for your generosity!