With Insight Women’s Center’s annual banquet rapidly approaching, I’d like to share some EXCITING NEWS about – TAXES!!
Okay, okay, I admit it, not much about taxes is exciting – except that refund! Am I right? But – what if I told you that you could contribute to a great cause, say to Insight Women’s Center, and save money on your taxes this year?
Here’s the deal – the CARES act, passed by Congress in March, contains several temporary provisions that increase the tax-deductibility of donations to charities.
• For the over 9 out of 10 people who no longer itemize their charitable giving, the CARES Act will allow these individual taxpayers to deduct donations to charity, up to $300, on their 2020 federal tax return even though they take the standard deduction. Married-filing-jointly taxpayers will get a deduction of up to $600.
• For those donors who are still able to itemize their deductions, and therefore directly write off gifts to charity, the current deduction cap was raised from 60% of adjusted gross income to 100% of adjusted gross income. For individuals, this could theoretically mean zero taxable income if someone gives big!
• For corporations, the CARES Act increases the cap for deductible charitable donations from 10% of taxable income to 25% of taxable income for 2020.
These are truly substantial changes to the tax treatment of donations. Of course, you should consult your tax professional regarding how these provisions affect your individual situation.