CARES Act 2020

The Coronavirus Aid, Relief, and Economic Security Act

2020 CHARITABLE GIVING TAX BREAK FOR DONORS

 

The CARES Act created the following changes to the tax treatment of donations made to qualified public charities, such as Springboard Landings, in tax year 2020.

For individuals and joint filers who do not itemize

  • The CARES Act allows individuals an additional, “above-the-line” deduction for charitable gifts made in 2020  up to $300.

  • Married-filing-jointly taxpayers will get an above-the-line deduction of up to $600.

For individuals and joint filers who do itemize

  • The CARES Act allows you to deduct up to 100 percent of your AGI for 2020 contributions (increased from 60 percent). If your contributions exceed the 100% the excess may be carried over  for the next 5 years.

Corporations

  •  The CARES Act increased the limitation for 2020 contributions to 25% of AGI and allows excess contributions to be carried over for 5 years.

For taxpayers age 70 ½ and older

  • The CARES Act waived the RMD for 2020

  • Known as the “IRA CHARITABLE ROLLOVER” the law allows you to make a QCD (Qualified Charitable Distribution) from your IRA up to $100,000 to Springboard Landings (a qualified public charity) without having to pay income taxes on the money

    • If you are 70 ½ or older, you can give any amount up to $100,000 from your IRA to Springboard Landings

    • The transfer generates neither taxable income nor a tax deduction, so you still benefit even if you do not itemize deductions.

    • Although the CARES ACT waived the (required minimum distribution for 2020), you may still make a QCD (Qualified Charitable Distribution) up to $100,000.

    • The transfer directly to the charity, not to the owner, may be made in addition to any other charitable giving you have planned.

    • CLICK HERE for more details

 

*Springboard Landings does not provide tax advice. Please contact your professional tax advisor to see how these can work for you.

RESOURCES

What the CARES Act means for your charitable giving

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