CARES Act Provides Charitable Giving Incentives
Did you know that the CARES Act* created charitable giving incentives for donors to 501c3 non-profit organizations?
Taxpayers who do not itemize deductions may take an above-the-line deduction on their 2020 return for qualified charitable contributions in an amount not to exceed $300.
The charitable giving cap for those who do itemize has been raised from 60 percent of adjusted gross income to 100 percent.
For corporations, the annual charitable giving limit has been increased from 10 percent to 25 percent of the corporation’s taxable income.
*See Section 2204 of the CARES Act for more information and be sure to speak with an accounting professional to answer questions specific to your tax filings. The incentive program applies to contributions made in 2020 and would be claimed on tax forms next year.