Don’t Forget Your Charitable Contributions

Dickinson Wright

Dickinson Wright

The CARES Act made a number of well publicized revisions to the tax code, including as to the payment of employee wages and the deduction of interest and net operating losses. Perhaps lesser known are the revisions in the CARES Act relating to charitable giving.

For non-itemizers, there is a new $300 “above the line” deduction on cash contributions made to charities (other than private non-operating foundations, supporting organizations, and donor-advised funds), that is deducted from a taxpayer’s income prior to the calculation of their adjusted gross income. For individuals that itemize deductions, the historical 50% or 60% of adjusted gross income limit on charitable deductions has been raised to 100%, so that an individual will be entitled to take a charitable deduction of up to 100% of their adjusted gross income.

For corporations, the historical charitable deduction limit of 10% of taxable income was raised to 25%.

These tax code revisions provide significant additional incentives for charitable giving in 2020.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dickinson Wright | Attorney Advertising

Written by:

Dickinson Wright

Dickinson Wright on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.