Benefits of The Coronavirus Aid, Relief, and Economic Security Act (CARES ACT)
Posted on April 22nd, 2020
“Tax Deduct-ability Bonus! The CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (CARES ACT) – Taxpayers can deduct charitable contributions of up to $300 made in 2020. The law also lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent. For corporations, the law raises the annual limit from 10 percent to 25 percent.”
Recent changes have been made to tax benefits with the intention of stimulating philanthropic giving during this time of crisis. Changes include an increase in limit of deductible charitable contributions, with a $300 limit for the year 2020 and beyond. This limit does not depend on the itemization of donations.
In addition, the cap of charitable contributions for individuals and corporations has been raised, eliminating the prior restrictions based on an individual’s adjusted gross incomes (AGI) and corporations’ taxable annual incomes. Individuals who itemize may now deduct charitable donations up to 100% of adjusted gross income (AGI), while corporations that itemize are eligible for deductions of up to 25% of their taxable income.
The recent alterations made to philanthropic giving tax benefits were intended to provide direct relief to charitable, community-based organizations. Organizations such as Child Advocates depend on continued donor support to make the necessary program modifications while serving Central Indiana’s neglected and/or abused children during these uncertain times.
To make a donation to Child Advocates, click here or send a check made payable to Child Advocates.
Thank you for your support during this time!