Overview of Charitable Deduction Tax Changes for 2020
The Coronavirus Aid, Relief and Economic Security (CARES) Act went into effect March 27, 2020, and provides tax relief for donors, which is added incentive to donate to nonprofits like Tabitha.
Benefits include:
$300 Above Standard Deduction*
New in 2020, most taxpayers can take another $300 over the standard deduction for cash contributions to charities. In 2018, more than 90% of tax payers took the standard deduction rather than itemizing.
Limits Raised for Charitable Deductions*
Individuals
Taxpayers who itemize are able to deduct donations up to 100% of their Adjusted Gross Income (previous limit was 60%), effectively eliminating their federal tax liability in 2020.
Corporations
In 2020, corporations can deduct up to 25% of the tax payer’s taxable income for cash donations to charities (up from 10% previously).
Required Minimum Distribution (RMD) Waived
The Required Minimum Distribution (RMD) is temporarily suspended for the 2020 tax year.
What Does this Mean for You?
Supporting nonprofit Tabitha is a win-win right now—you receive a benefit on your 2020 taxes, and support Seniors through Tabitha at the same time. We are so grateful for this added benefit to our donors who are able to give generously during this time of need.
We’re Here to Help
The Tabitha Foundation Team can help answer your questions and provide a variety of giving options of how you can Support Seniors now. Contact us to discuss your unique situation: 402.486.8509 or Foundation@Tabitha.org.
* Donations to donor-advised funds (DAF) not applicable.
This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.
