Did you know there are incentives to give in The Coronavirus Aid, Relief and Economic Security (CARES) Act?
Section 2204 of The CARES Act will let taxpayers deduct up to $300 in charitable donations from their taxable income. That means taxpayers can easily claim the deduction on their tax forms without having to go through the extra step of itemizing it. The rule will apply only to charitable contributions made in 2020. Taxpayers will be able to claim the deductions on their tax forms next year.
Section 2205 of the law lifts the existing cap on annual contributions for those who itemize from 60 percent of adjusted gross income to 100 percent. For corporations, the law raises the annual limit from 10 percent to 25 percent.