CARES Act Increases Deductions

for Charitable Giving

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), passed by Congress in March, provides some new incentives for charitable giving in 2020 to organizations like Cedars.

 

If you do not itemize your taxes:

 

Under the CARES Act, taxpayers who take the standard deduction in 2020 can claim a brand new “above the line” deduction of up to $300 ($600 for married couples) for cash donations made to charities.  This new rule does not apply to donations to donor-advised funds.

If you do itemize:

 

Taxpayers who itemize on Schedule A of their 2020 return can now elect to deduct cash charitable contributions up to 100% of their adjusted gross income (AGI), up from 60% of AGI previously.  Corporations can now deduct up to 25% of taxable income, up from 10%.

Cedars does not give tax advice.  For more information, please consult your tax advisor.