New CARES Act Means Tax Incentives for you!

In March of 2020, Congress passed the Coronavirus Aid Relief and Economic Security (CARES) Act. This Act includes an expansion of the charitable giving incentive which acknowledges that the work of nonprofits like Corning Community College Development Foundation are essential services. It is the first time Congress has passed this type of giving incentive in response to a disaster or national emergency. You could benefit from these new incentives! 

How?

If you:

• Plan to take the standard deduction 
• Don’t itemize 
• Plan to make a gift up to $300

If you plan to take the standard deduction, meaning you don’t plan to itemize, you can make a donation up to $300 and receive a reduction to your adjusted gross income (AGI). Your taxable income is reduced by the donation amount up to $300. Donations made to Donor Advised Funds (DAF) do not qualify for this new tax deduction. 

-OR-

If you: 

• Plan to itemize 
• Make a cash gift to a public charity 
• Available to individuals or corporations

There are new charitable limits that allows you to deduct more than in previous years. Individuals can deduct cash contributions to public charities up to 100% of their 2020 AGI on itemized tax returns. This is up from 60% in previous years. Corporations can deduct up to 25%, up from 10%. 

-OR-

If you:

• Are 72 or older
• Have an IRA
• Plan to make a charitable donation

If you are 72 or older, consider making a qualified charitable deduction from your IRA. You can satisfy your charitable giving goals with no tax consequences and satisfy your required minimum distribution (RMD) up to $100,000 per individual. 

Before deciding what works best for you, you should consult your legal, tax, or financial consultant for guidance.