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CARES Act Provides New Tax Benefits for You to Support Barrow

June 8, 2020

The Coronavirus Aid, Relief and Economic Security (CARES) Act was passed by Congress with overwhelming, bipartisan support and signed into law on March 27, 2020. The bill provides increased tax deductions for charitable giving for both individuals and corporations. As our philanthropic partners, we want to make sure you are aware of two tax deduction opportunities the CARES Act has created for you:

Are you itemizing deductions?

The adjusted gross income (AGI) limit for cash contributions was increased for individual donors through the CARES Act. For cash contributions made in 2020, you can now elect to deduct up to 100 percent of your AGI (increased from 60 percent).

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).

Not itemizing?

The CARES Act allows for an additional, “above-the-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.

Both of these new incentives through the CARES Act apply only to cash contributions to public charities like Barrow and do not apply to contributions to supporting organizations or public charities that sponsor donor-advised funds. However, there have been no changes to existing deductions for contributions made into a donor-advised fund. This means you are still able to deduct up to 60 percent AGI in cash and up to 30 percent AGI in appreciated assets contributed to a donor-advised fund.

Existing carry-over rules still apply, so if your donations in 2020 exceed your AGI deduction limits, you may carry forward excess deductions for up to five subsequent tax years. As always, donors should consult with their tax and legal advisors when considering their charitable giving.

Through the 2020 CARES Act, you are able to increase your support of the incredible life-saving programs at Barrow, and we will be able to continue to provide the best care for patients battling the worst brain and spine disorders. 

The tax information provided is general in nature and should not be construed as legal or tax advice. Content provided relates to taxation at the federal level only. Charitable deductions at the federal level are available only if you itemize deductions. Rules and regulations regarding tax deductions for charitable giving vary at the state level, and laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of the information provided. Tax laws and regulations are complex and subject to change, and changes in them may have a material impact on pre- and/or after-tax results. Always consult an attorney or tax professional regarding your specific legal or tax situation.