A new financial incentive encourages Americans to give generously to charities during a time when charities need our help more than ever. The CARES Act includes an above-the-line deduction for up to $300 in charitable donations given in 2020 while also extending incentives for itemized deductions and corporate giving.
The time to give is now to support charities like United Way of Hall County and our community partners while also taking advantage of this new incentive.
If you take the standard deduction, the CARES Act allows you to take a tax deduction for contributions made to qualified charities up to $300 per year starting in 2020. That means if you take the standard deduction and give $300 to charity, you will get a $300 tax break in addition to the standard deduction. The 2020 standard deduction is $12,400 for individuals and $24,800 for married couples filing jointly.
If you file for itemized deductions, the CARES Act temporarily lifts the existing limits on charitable giving from 60% of adjusted gross income and allows you to take a tax deduction of up to 100% of your adjusted gross income to qualifying charities in 2020.
For corporations, the law allows a tax deduction of up to 25% of adjusted tax income for contributions to qualifying charities. The CARES Act lifts the limits from 10% of adjusted taxable income to 25% for 2020.