A New Way to Stay ConnectedNovember 23, 2021
The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27, 2020, to help combat the far-reaching impacts of COVID-19. The bill provides increased tax incentives for charitable giving for both individuals and corporations.
Individuals Itemizing deductions
The adjusted gross income (AGI) limit for cash contributions was increased for individual donors. For cash contributions made in 2020, you can now elect to deduct up to 100 percent of your AGI (increased from 60 percent).
Individuals not itemizing
The CARES Act allows for an additional, “above-the-line” deduction for charitable gifts made in cash of up to $300 per individual, $600 for couples filing jointly. If you are not itemizing on your 2020 taxes, you can claim this new deduction.
The AGI limit for cash contributions was also increased for corporate donors. Corporations can now deduct up to 25 percent of taxable income (increased from 10 percent).
Check with your tax adviser to make the most of these new tax incentives when planning your end-of-year charitable giving!