How Coronavirus Aid, Relief and Security Act Impacts You
- INDIVIDUALS TAKING STANDARD DEDUCTION, donors who do not itemize their taxes (most people) can now take up to $300 in above the line deductions for qualified charitable gifts (501(c)3 nonprofits like Boys & Girls Clubs of Muncie) Married and filing separately should double that deduction. EFFECT: Now, all donors reduce their taxable adjusted gross income if they make charitable gifts in 2020. With past years increases in the standard deduction, this temporary measure reignites lower-level donors who will save money on their 2020 taxes from donating.
- INDIVIDUALS WHO ITEMIZE may now deduct up to 100% of their taxable income via qualified charitable donations in 2020 (used to cap at 60%). If you previously itemized, you are now incentivized to save every donation receipt. EFFECT: Donors with more sophisticated taxes who itemize can now make even larger charitable gifts to reduce their taxable adjusted gross income. This incentivizes larger charitable gifts for itemizers.
- CORPORATIONS WHO ITEMIZE may now deduct up to 25% of their taxable income (up from 10%) and food donation deductions up to 25% (up from 15%). EFFECT: Corporations who make charitable gifts may deduct 15% more of their cash gifts and 10% more of gifts of food, resulting in lower tax liability for 2020.
TO MAKE A DONATION or to learn more about how you can support the Boys & Girls Clubs’ mission, contact Amy Gibson at (765) 282-4461 ext 103.