100% AGI Giving Opportunity for 2020

One aspect of the 2020 CARES Act passed by Congress encourages individuals and corporations to increase their giving this year by increasing the charitable deduction thresholds.

Individual itemizers Givers who itemize their deductions may continue to deduct charitable gifts like before, but they now get a special deduction for cash gifts made in 2020 to churches and public charities. With this special deduction, givers are able to deduct up to 100% of their adjusted gross income (AGI) in 2020.

Individual non-itemizers Givers who take the standard deduction on their personal tax return are entitled to deduct up to $300 from their income for cash gifts made in 2020 to churches and public charities. This is in addition to the standard deduction. As with the special deduction allowed to those who itemize their deductions, this $300 above-the-line deduction is allowed for cash gifts to churches and public charities. It is not allowed for gifts of non-cash assets or gifts to Giving Funds or SOs. A gift to a Single-Charity Fund with NCF does qualify.

Corporations The CARES Act also increases the limit on deductible corporate charitable gifts from 10% to 25% of the corporation’s taxable income. Once again, the increased deduction is only for cash gifts to churches and public charities, Single-Charity Funds qualify, but Giving Funds and SOs do not.

Thank you National Christian Foundation for sharing this news.

Full Cares Act Law PDF

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