Charitable deductions have changed in the wake of COVID-19

Read below to see how changes can benefit you as an itemizer, non-itemizer or corporation.
On March 27th, 2020 President Trump signed the final $2 trillion COVID-19 stimulus package into law. It includes a new financial incentive for individuals and companies to make donations to qualifying charities such as United Way of the Midlands and our community partners.

The measure grants taxpayers a deduction for up to $300 in charitable donations made in 2020. As COVID-19 continues to affect the physical, mental and financial well-being of our neighbors, more people than ever are struggling to meet their basic needs. If you’d like to help support those directly affected by the virus, it’s the perfect time to take advantage of this tax deduction by making a gift.

Below, we have provided a detailed tax benefit break down for different deduction types:

If You Take the Standard Deduction…

The CARES ACT allows you to take a tax deduction for donations of up to $300 made to qualifying charities. This deduction applies for 2020 and beyond. This means, if you give up to a $300 donation to qualifying charities, the amount of your donation will be added to the standard rate of deduction. The 2020 Standard deduction is $12,400 for individuals and $24,800 for married couples filing jointly.

 

If You Itemize Deductions…

The CARES ACT allows you to take a tax deduction of up to 100% of your Adjusted Gross Income (AGI) for contributions to qualifying charities starting in 2020. The new law temporarily lifts the limits on charitable giving from 60% of a taxpayer’s AGI to 100% for 2020.

 

If You Are a Corporation…

The CARES ACT allows your entity to take a tax deduction of up to 25% of their Adjusted Tax Income for contributions to qualifying charities starting in 2020. The new law temporarily lifts the limits from 10% of adjusted taxable income to 25% for 2020.

Donate to COVID-19 relief efforts today. Choose how you want to support neighbors directly impacted by COVID-19 by providing food, healthcare, rent/mortgage or utility/energy assistance.

About the Author

Brayton is the Manager of Communications at United Way of the Midlands. She spends most of her days writing press releases, letters, brochures and more, but she wouldn’t have it any other way! She loves to travel and is always daydreaming about her next adventure. When she’s at home, you’ll most likely find her hanging out with her family and friends, eating chocolate or reading a good book.

United Way of the Midlands   |   2201 Farnam Street   |   Omaha, NE 68102   |   402-342-8232

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