2020 Tax Incentives
2020 Tax Incentives (The CARES Act)

The CARES Act is federal legislation recently passed that provides a new economic stimulus package in response to the novel coronavirus COVID-19 crisis.

The act provides new tax incentives available for charitable cash contributions:

  • The 60% adjusted gross income limitation for cash charitable contributions is expanded to 100% of adjusted gross income for 2020.
  • Taxpayers can take up to $300 deduction for cash donations when they file their 2020 taxes in 2021.
  • The $300 deduction is available only to those who do not itemize. This is known as an “above-the-line” deduction.
  • The limit on the deductibility of corporate contributions of cash made in 2020 has increased to 25% of net taxable income.

 

Check with your tax professional to see if you can take advantage of the new incentives.