Tax Law Changes Under CARES Act in 2020
Updated: Jul 20
The CARES Act, can provide some additional tax relief for individuals making charitable contributions by providing an additional bonus for charitable contributions in 2020.Whether you itemize or take the standard deduction on your 2020 tax return, you can now claim a deduction from your adjusted gross income (AGI) of up to $300 for cash donations to nonprofit organizations (excluding donations to donor advised funds).
The Act has suspended required minimum distributions (RMDs) from IRAs/401Ks through the rest of 2020.
Also, for individuals, 100% of all cash contributions to a public charity is now deductible from your AGI (previous law was 60%). Corporations, can deduct 25% of all cash contributions from taxable income (previously 10%).
If you have additional questions about how the CARES Act affects you, schedule a consultation with our office and let's talk.