With so many life changes occurring throughout 2020, we want to provide some important resources that could assist your charitable giving and tax planning this year. Regardless of where you plan to give, our team at Mama’s Kitchen always hopes to be a beneficial resource for you and your family.
When the CARES Act was passed in March, it brought increased tax benefits for charitable giving in 2020 for both individuals and corporations. Click here to view our detailed reference guide.
Benefits for Individual Donors:
- If you take the Standard Deduction – The CARES Act will allow these individual taxpayers to deduct donations to charity of up to $300 on their 2020 federal tax return, in addition to taking the standard deduction. Married-filing-jointly taxpayers will get an above-the-line deduction of up to $600.
- If you itemize deductions – The CARES Act allows for deductions up to 100% of adjusted gross income (AGI) for individuals and joint filers. Prior to the CARES Act, the deduction cap was 60% of adjusted gross income.
- IRAs and Qualified Charitable Distributions – The CARES Act did not change any rules around QCD, however the additional opportunity to deduct 100% of your AGI for charitable distributions might allow individuals over 59½ years old the benefits similar to a QCD. Please consult your accountant or financial advisor.
Benefits for Corporate Donors:
The AGI limit for cash contributions was also increased for corporate donors. Corporations can now deduct up to 25% of taxable income (increased from 10%).
Learn more information and view our reference guide here.
Information contained herein was accurate at the time of posting. This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
If you would like to discuss charitable gifts to Mama’s Kitchen, please contact Jenna Novotny at (619) 349-7322 or Jenna@mamaskitchen.org.