Important Tax Information: New Benefits of Charitable Giving in 2020
Helping your community just got easier.
It’s never too early to begin thinking about your taxes. Looking for a bright spot while you complete the process for the year? Did you know that eligible taxpayers can deduct up to $300 in charitable contributions when they file for 2020?
Heart of Florida United Way has consistently worked to provide resources to households in need. This year, the need is greater than ever before. If you haven’t made a charitable contribution greater than $300, please consider supporting the work of United Way. As our community still feels the effects of COVID-19, you can support families in need in their recovery but also take advantage of this tax deduction.
How does it work?
The CARES Act (Coronavirus Aid, Relief, and Economic Security Act) allows you to take a tax deduction for donations of up to $300 made to qualifying charities, including Heart of Florida United Way. This deduction applies for 2020 and beyond and is available to those who take the standard deduction. By taking part, you can reduce your total taxable income by up to $300 for an individual.
If you itemize deductions, this new law temporarily lifts the limits on charitable giving from 60% of your Adjusted Gross Income to 100% for 2020.
Corporations can take a tax deduction of up to 25% of their Adjusted Tax Income for contributions to qualifying charities starting in 2020, instead of the normal 10% limit.
Talk to your tax professional and see what charitable giving can do to help boost your next filing.
But don’t wait too long: the charitable deduction expires on December 31, 2020.
Bring the joy and comfort of the season to your neighbors this year as we navigate the holidays in our adjusted world.
For more information, please consult IRS Tax Help.