The CARES Act & Charitable Giving

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which passed on March 27, 2020, facilitates charitable giving to support nonprofits like A Home Within. Key points:

• All individual taxpayers who don’t itemize can deduct charitable contributions up to $300 from their 2020 taxes.
• The adjusted gross income (AGI) has been waived for 2020, allowing those who itemize to deduct contributions up to 100% of AGI. And any unused contribution deductions on your 2020 taxes can be carried forward up to five years.
• Qualifying C-Corporations can deduct up to 25% of their charitable contributions. Ordinarily, C-Corporations can only deduct up to 10% of their charitable contributions but for 2020, qualifying companies can deduct up to 25% of their giving.
• Required minimum distributions from an IRA for 2020 have been waived. However, if you are 70 ½ or older, you can still make a qualified charitable distribution up to $100,000 from your IRA to a public charity such as A Home Within. A qualified charitable distribution would normally help satisfy your required minimum distribution but even though the minimum distribution requirement is waived for 2020, it may still be an excellent way to give, especially if you do not itemize.

This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.