Cares Act Encourages Charitable Giving
You may have heard about the CARES ACT, but did you know the new legislation has incentives that encourage charitable giving?
On March 27, the Coronavirus Aid Relief and Economic Security (CARES) Act was signed into law to help combat the far-reaching impacts of COVID-19. The bill provides increased tax incentives for Charitable Giving for both Individuals and Corporations to stimulate philanthropy throughout America. Below are ways you could benefit, depending on how you file your tax return.
IF you take the standard deduction: The standard deduction is a fixed dollar amount that reduces the income you are taxed on. If you fall in this category, as most taxpayers do, you may receive a new above the-line Charitable deduction for Cash contributions of up to $300 per individual ($600 per married couple, filing jointly.)
IF you itemize your deductions: Itemized deductions are eligible expenses individuals can claim on Federal Tax Returns, which can decrease their taxable income. If you are an itemizer, you may deduct annual contributions of up to 100% of your adjusted gross income for CASH GIFTS MADE THIS YEAR TO Assistance League of Greater Cincinnati. This adjustment may be attractive if you wish to make a large cash donation.
A note about retirement plan distributions: The CARES Act temporarily waives required distributions from most retirement plans in 2020. However, if you are 70 ½ or older, you are still able to make a tax-free gift of up to $100,000 directly from your IRA to any 501 (C) (3) charity.
IF you wish to donate to Assistance League of Greater Cincinnati, please consult your financial advisor. The CARES Act of 2020 has provided these tax incentives just for the calendar year of 2020. All cash donations must be made by the end of the calendar year to qualify for these special tax provisions.
You may have heard about the CARES ACT, but did you know the new legislation has incentives that encourage charitable giving?
On March 27, the Coronavirus Aid Relief and Economic Security (CARES) Act was signed into law to help combat the far-reaching impacts of COVID-19. The bill provides increased tax incentives for Charitable Giving for both Individuals and Corporations to stimulate philanthropy throughout America. Below are ways you could benefit, depending on how you file your tax return.
IF you take the standard deduction: The standard deduction is a fixed dollar amount that reduces the income you are taxed on. If you fall in this category, as most taxpayers do, you may receive a new above the-line Charitable deduction for Cash contributions of up to $300 per individual ($600 per married couple, filing jointly.)
IF you itemize your deductions: Itemized deductions are eligible expenses individuals can claim on Federal Tax Returns, which can decrease their taxable income. If you are an itemizer, you may deduct annual contributions of up to 100% of your adjusted gross income for CASH GIFTS MADE THIS YEAR TO Assistance League of Greater Cincinnati. This adjustment may be attractive if you wish to make a large cash donation.
A note about retirement plan distributions: The CARES Act temporarily waives required distributions from most retirement plans in 2020. However, if you are 70 ½ or older, you are still able to make a tax-free gift of up to $100,000 directly from your IRA to any 501 (C) (3) charity.
IF you wish to donate to Assistance League of Greater Cincinnati, please consult your financial advisor. The CARES Act of 2020 has provided these tax incentives just for the calendar year of 2020. All cash donations must be made by the end of the calendar year to qualify for these special tax provisions.
