The new Coronavirus Stimulus Package bill, signed into law by President Trump, increases YOUR Donation.
Here’s how the new law stretches your charitable giving:
- Smaller gifts, up to $300, now 100% deductible.Until this bill passed, only those who itemize are able to use a charitable deduction. Beginning today individuals can deduct up to $300 whether or not they itemize their deductions. This deduction can be used for contributions of cash, credit card, checks, but not for gifts of stock.
- Larger gift deduction raised up to 100%. Until this bill passed, individuals could deduct up to 60% of their adjusted gross income (AGI) for charitable deductions of cash (not gifts of stock). The stimulus package allows individuals to deduct it up to 100% of their AGI for the year 2020. Donors who use this provision must tell the IRS. This is helpful for individuals making major gift donations and could allow a person to make charitable gift eliminating their tax burden. Any contributions in excess of total AGI may be carried forward for up to five additional years.
Maybe you have a business that is unaffected by the Coronavirus outbreak, and you are able to make a corporate donation today.
- Corporations have much greater incentives to make charitable gifts. Usually giving is limited to 10% of taxable income for the corporation. That limit has been increased to 25% of the taxable income, making charitable gifts much more attractive to business donations.