CARES Act Charitable Donations and Rollover
A lot of people have been asking me about the CARES Act and data about rollover for donations.
Here is what I found so far:
“Previously, deductible gifts to public charities were generally limited to 60% of a taxpayer’s adjusted gross income (AGI); this year there’s no cap and donors can deduct up to 100% of AGI for 2020. Any excess contributions available can be carried forward for the next five years, subject to the 60% AGI limit previously in place.”
As far as I can tell, rollover from previous years would be at the cap for that year, 50 or 60% of AGI depending on how it was donated.
The 2020 standard deductions are as follows:
Single; Married Filing Separately $12,400
Married Filing Jointly $24,800
Head of Household $18,650
This means in order to take advantage of this part of the CARES Act, you have to be donating more than the standard deduction.
There is also this from the same article:
“Above-the-line universal charitable deduction.
This provision is the one I find most useful for nonprofits of all sizes. It provides for a universal, above-the-line, deduction of up to $300 cash made by anyone who takes the standard deduction; they don’t need to itemize to benefit from this provision. This will reduce their taxable income for 2020. Maybe not by a lot, but it makes giving to you less expensive for donors.”
Anyone can take advantage of that, whether you itemize or not.
This year, your favorite charities need more help than ever. Please consider surprising them with a donation before the end of the year. They will be forever grateful, and you may end up changing people’s lives.
Maya Weinreb | Founder & CEO