CARES Act Provides Increased Opportunities for Individuals to Deduct Charitable Contributions
April 17, 2020
The CARES Act, which was enacted in response to the national emergency created by COVID-19, provides opportunities for individual taxpayers to increase tax deductions claimed on charitable contributions made during 2020. These opportunities generally include the following:
- Individuals who itemize deductions on their 2020 Form 1040 may deduct cash contributions to public charities and other qualifying charitable organizations listed in Section 170(b)(1)(A) in an amount equal to 100% of their modified gross income. This would supersede the general prohibition on deducting cash contributions in excess of 60% of modified gross income. Individual taxpayers will need to make an election in order to utilize the increased limit. Contributions to donor-advised funds and supporting organizations do not qualify.
- Individual taxpayers who do not itemized deductions for 2020 may take a deduction of up to $300 against their adjusted gross income for contributions made to the qualifying charitable organizations described above.
Please contact any member of Nyemaster’s Tax Department if you would like additional information regarding the increased tax benefits available for charitable contributions during 2020.
Additional CARES Act Coverage
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- CARES ACT ESTABLISHES PAYCHECK PROTECTION PROGRAM
- HOW TO APPLY FOR A PAYCHECK PROTECTION PROGRAM LOAN
- 7 FAQS ON UPDATED GUIDANCE TO PAYCHECK PROTECTION PROGRAM
- PPP LOAN FORGIVENESS: AN OVERVIEW
- BEST PRACTICES TO MAXIMIZE PAYCHECK PROTECTION PROGRAM LOAN FORGIVENESS
- FED LAUNCHES MAIN STREET LENDING PROGRAMS FOR SMALL AND MID-SIZED BUSINESSES
- EXPANSION OF OTHER LOANS PROGRAMS
- NEW AND MODIFIED TAX PROGRAMS UNDER CARES ACT
- CARES ACT: EMPLOYEE BENEFIT PROVISIONS
- WHAT CARES ACT MEANS FOR HIGHER EDUCATION INSTITUTIONS
- CARES ACT PROVIDER RELIEF FUND
- ADDITIONAL DISTRIBUTION FROM CARES ACT PROVIDER RELIEF FUND
- CARES ACT: MORE THAN STIMULUS MONEY
- MEDICARE ACCELERATED AND ADVANCE PAYMENT PROGRAM
- FEDERAL RELIEF FOR HEALTHCARE PROVIDERS