To stimulate non-profit giving in 2020, the CARES Act temporarily suspends charitable contribution limits. Previously, charitable contributions could only be deducted up to 60% of adjusted gross income (AGI) if taxpayers itemized their deductions. The CARES Act removes the limitation through 2020 for qualifying organizations, including:
religious
charitable
educational
scientific
literary
In other words, through 2020 itemized charitable contributions can be deducted up to 100% of AGI. Taxpayers who do not itemize deductions can take a charitable deduction of up to $300.
So, 2020 is a good year to give to your favorite charity!
If you plan to adjust your charitable giving before the end of the year in response to the CARES Act incentive, please contact your Client Service Director at FAL to discuss the details of your contribution. On the surface, charitable giving is a straightforward transaction, however, in some cases, there are some complexities you’ll want to be aware of prior to giving.
Have questions or need more information, email us at info@falcpa.com.