The CARES Act may impact the tax benefits of your 2020 gift to SFI!
On March 27, 2020 the US CARES Act was signed into law with special incentives to encourage charitable giving. These incentives include:
New Charitable Deduction for Taxpayers Who Do Not Itemize
Previously, charitable contributions could only be deducted if taxpayers itemized their deductions. However, taxpayers who do not itemize deductions may take a charitable deduction of up to $300 for cash donations made in 2020.
Higher Deduction Limits
The amount of charitable cash contributions taxpayers can deduct on Schedule A as an itemized deduction was limited to 60 percent of the taxpayer’s adjusted gross income (AGI) in 2019. This restriction has been lifted for 2020; individuals may deduct qualified donations of up to 100 percent of their AGI.
Contact Us and Your Advisors
The CARES Act is hundreds of pages long and includes multiple provisions that could benefit you financially. Consult your advisors about these provisions and their tax implications. Contact us if we can help you with any gift-planning opportunities.
To read the official IRS Tax Tip, click here.