In the Coronavirus Aid, Relief, and Economic Security Act (CARES) Congress provided incentives for taxpayers to support their favorite charity! We hope you will support ASGA!
There is a new deduction for total charitable contributions of up to $300 made by an individual taxpayer. This is an “above the line” deduction so all taxpayers would be eligible to take the deduction, even those who use the standard deduction. The deduction would not apply to noncash gifts or to gifts contributed to donor advised funds. It would apply to contributions made in 2020 and therefore would be claimed on tax forms/filings next year.
In addition, for those individuals that itemize their deductions, the Act would suspend for 2020 the usual limit from the existing cap on annual contributions from 50 percent of adjusted gross income (AGI) or 60 percent for cash to 100 percent.
For corporations, the annual charitable contribution limit for 2020 that is usually 10 percent of AGI, is increased to 25 percent.