New Tax Relief for Giving​

Cares Act 2020 – Deduction Caps Raised for Giving

CARES Act for Nonprofits – Friday, March 27, the Congress passed and the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic stimulus package legislated to provide immediate relief for nonprofits.

 

New Deduction Available: Up to $300 per taxpayer ($600 for a married couple) in annual charitable contributions. This is available only to people who take the standard deduction (for taxpayers who do not itemize their deductions). It is an “above the line” adjustment to income that will reduce a donor’s adjusted gross income (AGI), and thereby reduce taxable income. A donation to a donor advised fund (DAF) does not qualify for this new deduction.

 

New Charitable Deduction Limits: As part of the bill, individuals and corporations that itemize can deduct much greater amounts of their contributions. Individuals can elect to deduct donations up to 100% of their 2020 AGI (up from 60% previously). Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%. The new deduction is for gifts that go to a public charity, such as My Recovery Day. The old deduction rules apply to gifts to private foundations. The higher deduction does not apply to donations directly to a DAF.

Make a Donation to Restore Lives and Families

donate

You do not need a PayPal account to use your credit card

donate

Mail a Donation - check or money order

My Recovery Day
4500 Lee Road
Building H
Cleveland, OH 44128

This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.

For Questions Call Us at 216-978-9902
Or
Contact Us