Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
New Charitable Deduction Incentive:
The CARES Act creates a new “above-the-line” tax deduction (for taxpayers who do not itemize their deductions). This new deduction for charitable contributions is up to $300 per individual taxpayers ($600 for a married couple). This incentive applies to cash contributions made in 2020 to a public charity organization such as Keiro.
For those individuals and corporations that itemize, the existing deduction cap on annual contributions is higher. Individuals can deduct donations up to 100% of their 2020 adjusted gross income (previously 60%). Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.
