giving at the kirk

Good news! Recent legislation expands the tax benefits related to charitable giving for all taxpayers, whether they itemize deductions or not. While adopted in response to the pandemic, these special rules are not limited to contributions related to COVID-19, but apply to all charitable contributions. Please consult with your qualified tax advisor for more details, and look to the Internal Revenue Service for additional guidance.The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) expands charitable giving tax breaks two ways:

1) “Universal Charitable Deduction”: In 2020, taxpayers who do not itemize deductions may now deduct up to $300 for contributions made to qualifying charities. Although the legislation is not entirely clear, many commentators feel that this amount is per taxpayer ($600 for a married couple). It’s unclear at this time whether this change is permanent.2) Taxpayers who do itemize deductions may elect to deduct cash contributions made to qualifying charities, in an amount up to 100% of their adjusted gross income. This change applies only to 2020.

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