The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed by Congress on March 27, includes a number of provisions in response to the COVID-19 pandemic. One provision that can help your wallet is the Charitable Giving Incentive.
From the Council of Nonprofits analysis:
The Charitable Giving Incentive (Sections 2204 and 2205) “creates a new above-the-line deduction (universal or non-itemizer deduction that applies to all taxpayers) for total charitable contributions of up to $300. The incentive applies to cash contributions made in 2020 and can be claimed on tax forms next year. [Section 2204]. The law also lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent.”
So what does this mean for you? If you give to causes you care about, and don’t typically itemize those donations on your taxes, you will still be able to claim a tax credit of up to $300 when you donate this year.
That means if you donate today – or become a monthly donor at $30/month – you’ll be able to get up to $300 back through your tax refund next year.And, if you do itemize your taxes, the benefits are even greater.
That means if you donate today – or become a monthly donor at $30/month – you’ll be able to deduct at least $300 on your tax refund next year.
But it only applies to donations made in 2020. So level up your support for people-first streets if you can. You’ll support better bike lanes today, and get a high-five through your taxes next year.
Resources:
Council of Nonprofits on the Coronavirus Aid, Relief, and Economic Security (CARES) Act.