Did you know this about the CARES Act?
To encourage charitable giving in 2020, the CARES Act includes two tax provisions that reward people who donate to charity:
- Taxpayers who do not itemize their deductions will be able to claim a charitable deduction of up to $300 per taxpayer ($600 for a married couple) for cash donations made in 2020. This means that you could add an additional $300 to your charity budget this year, recover a portion of it in tax savings, and help Unity House to address extraordinary current needs. NOTE: A donation to a donor advised fund (DAF) does not qualify for this new deduction.
- For taxpayers who will itemize on their 2020 return, the 60% of adjusted gross income limit that normally applies to cash contributions is waived. That means you can deduct more of your charitable cash contributions this year, up to 100%. Again: a donation to a donor advised fund (DAF) does not qualify for this new deduction.
Please, always check for yourself details that may affect your tax situation as each situation is different.