CARES ACT and 2021 charitable contributions

The CARES Act included language that makes giving to DCFYI easier in 2020!

This is true for people who take the standard deduction or itemize. 

New Deduction Available: Up to $300 per taxpayer ($600 for a married couple) in annual charitable contributions. This is available only to people who take the standard deduction (for taxpayers who do not itemize their deductions). It is an “above the line” adjustment to income that will reduce a donor’s adjusted gross income, and thereby reduce taxable income. 

New Charitable Deduction Limits: Individuals and corporations that itemize can deduct much greater amounts of their contributions. Individuals can elect to deduct donations up to 100% of their 2020 adjusted gross income (up from 60% previously). Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%. The new deduction is for gifts that go to a public charity, such as Family & Youth Initiative. The old deduction rules apply to gifts to private foundations.

This information is intended as helpful guidance. Fuller information is on the IRS website.

Donors should always discuss questions with a professional tax preparer.

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