Finally some good news in 2020!

More of your charitable giving can be deducted thanks to the CARES Act. On Friday, March 27, Congress passed and the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic stimulus package legislated to provide immediate relief for nonprofits.

An expanded charitable giving incentive is a welcome acknowledgment by Congress that the work of nonprofits like Tennessee Wildlife Federation are doing essential work. More than ever, our water, wildlife, and wild places are in need of critical support. Now you can make an even more impactful tax deductible gift to bolster conservation in Tennessee.

New Deduction Available

Up to $300 per taxpayer ($600 for a married couple) in annual charitable contributions. This is available only to people who take the standard deduction (for taxpayers who do not itemize their deductions). It is an “above the line” adjustment to income that will reduce a donor’s adjusted gross income (AGI), and thereby reduce taxable income. If you have already made a donation since January 1, that contribution counts toward the $300 cap. A donation to a donor advised fund (DAF) does not qualify for this new deduction.

New Charitable Deduction Limits

As part of the bill, individuals and corporations that itemize can deduct much greater amounts of their contributions. Individuals can elect to deduct donations up to 100% of their 2020 AGI (up from 60% previously). Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.

>>READ MORE: Get specifics from the IRS here