26 Aug CARES Act Allows for Above-The-Line Deduction for Charitable Gifts up to $300
By Jodi Legge, Executive Director, Wisconsin Veterinary Medical Foundation
Did you know the Coronavirus Aid, Relief and Economic Security (CARES) Act, passed back in March, allows for an additional, “abovethe-line” deduction for charitable gifts made in cash of up to $300? If you are not itemizing on your 2020 taxes, you can claim this new deduction for donations to the Wisconsin Veterinary Medical Foundation (WVMF) and other 501(c)(3) organizations.
The WVMF welcomes donations in any amount. The funds are used to support organizations and initiatives that enhance the lives of animals, their owners and their communities-at-large. Since 2019, the WVMF has provided grants to organizations that provide support animals to veterans and educational resources to train workers helping animals following natural or man-made disasters.
Are you itemizing deductions?
The adjusted gross income (AGI) limit for cash contributions was increased for individual donors. For cash contributions made in 2020, you can now elect to deduct up to 100 percent of your AGI (increased from 60 percent).
Are you interested in corporate giving?
The AGI limit for cash contributions was also increased for corporate donors. Corporations can now deduct up to 25 percent of taxable income (increased from 10 percent).
As you look for ways to help those in need, be sure to check with your tax accountant to understand how these CARES Act provisions may impact your charitable contributions in the 2020 tax year.