The CARES Act was signed into law to help provide some financial stability and relief to individuals and businesses affected by COVID-19. Among the provisions in the Act are a number of impactful charitable giving and federal taxes:
- An above-the-line deduction of $300 is available to individuals for cash contributions to charities, regardless of whether you itemize deductions.
- For individuals who itemize their deductions for charitable giving, the 60 percent of adjusted gross income limit for cash gifts is suspended for 2020.
- For corporations, the normal 10 percent limit on charitable contributions is increased to 25 percent of taxable income.
If you’re planning a year-end donation and want to benefit from CARES Act tax changes, consider a one-time payment and recurring charitable donations to Circle. Donations are easy to setup through our online donation page: https://interland3.donorperfect.net/weblink/weblink.aspx?name=E168088&id=2.
There is also comfort in planning ahead when it comes to charitable giving. If estate planning is on your 2021 calendar, will you consider including Circle of Concern in your will or trust? For more information about how to extend your legacy into the future, talk to your financial planner or contact cyndi@circleofconcern.org.
Contact your tax preparer for strategies to take advantage of these provisions in your year-end giving.
