As you consider your charitable contributions in 2020, we wanted to ensure you are informed about the benefits of charitable giving that are included in the stimulus package:
1. Up to $300 in charitable giving can be deducted off the top of your taxes for 2020. This applies beyond the standard deduction and itemizing is NOT required to claim the deduction. The deduction will ultimately reduce the amount of your income that is taxable. Currently, you may give up to $300 for this provision and can claim the gift on next year’s tax filing. 2.The bill also lifts the existing cap on annual contributions for those who do itemize, raising it from 60% AGI to 100% AGI for individuals.
As always, we suggest that you work with your tax advisor if you have any questions about the CARES Act and how it impacts your charitable giving.