Make a Gift. Change Lives. Mitigate Your Taxes.
Tough economic times often lead to a drop in charitable giving as individuals, families and businesses look for ways to save money and meet expenses. But it’s during these times that our gifts are needed the most.
To encourage giving, the Coronavirus Aid, Relief, and Economic Security (CARES) Act includes changes to the deductibility of charitable contributions made in 2020. Depending on your circumstances, these provisions may allow you to mitigate your taxes while impacting the lives of others.
If you itemize your deductions, you can deduct cash contributions up to 100% of your adjusted gross income (AGI) in 2020. The previous limit was 60% of AGI. Note: The gifts must be made directly to the charities, not through Donor Advised Funds or private foundations.
If you plan to take the standard deduction this year, you can deduct up to an additional $300 for cash charitable gifts.
The limit for cash contributions was also increased for corporations from 10% to 25% of taxable income.
Your charitable gifts help individuals and communities flourish. An effective gifting strategy can also mitigate your tax liabilities. Our tax and planning professionals can guide you through the nuances of the CARES Act to help you do well by doing good. Contact us to learn more.
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