Tax advantages for charitable gifts raised by CARES Act
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The CARES (Coronavirus Aid, Relief, and Economic Security) Act was signed into law in April and it allows taxpayers to take a larger deduction for charitable gifts than would normally be available. Specifically:
- For individuals, it increases the limit on deductions for cash contributions to public charities from 60% of the individual’s adjusted gross income to 100%.
- For corporations, it increases the income limits on the deduction for charitable cash contributions from 10% of the corporation’s taxable income to 25%.
- Allows taxpayers who do not itemize their deductions to deduct up to $300 of cash contributions to public charities with an above-the-line deduction beginning in 2020. This provision applies to all years going forward.
These tax advantages are yet another good reason to make a gift to the Banner Health Foundation or the Banner Alzheimer's Foundation this year before 2020 ends!