THE CARES ACT
Donations made up through December 31 st count toward 2020 tax deductions. Under the CARES Act, which was designed to provide economic relief for the nation during the COVID-19 pandemic.
Individuals who itemize can now deduct charitable cash gifts in 2020 to the extent of 100 percent of their entire adjusted gross income rather than a cap at 60 percent.
Individuals, who do not itemize but take the standard deduction, can deduct up to $300 in annual charitable contributions. This is an “above the line” adjustment to income that will reduce a donor’s adjusted gross income (AGI), and thereby reduce taxable income.
This information is not intended as legal or tax advice. We encourage you to consult your financial planner for more information. For additional information on the CARES Act, visit home.treasury.gov/cares.