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Dear John,
The weather outside is frightful, but the tax breaks are so delightful...
Hang on, way too much, way-too-early eggnog. But we did find a little jingle, jingle at the bottom of Uncle Sam's gift bag - also known as the federal stimulus package. This year’s CARES Act offers an extra incentive for people and corporations to donate to charity before December 31. Here are the details:
1. If you take the standard tax deduction, you can deduct up to $300 for any cash, check or credit card gifts made in 2020. This additional “above the line” deduction can be used for donations to qualified charitable organizations, including ELPC.
2. If you itemize your tax returns you can deduct a much higher amount. Usually individuals can deduct up to 60% of their adjusted gross income (AGI) for charitable deductions. This year, you can deduct up to 100% of your AGI for cash gifts.
3. Corporations have a bigger incentive to make charitable donations. Corporate charitable gifts are typically limited to 10% of taxable income. This year, that limit is increased to 25% of taxable income.
If you need one more reason to give this year, maybe ELPC’s $25,000 YEAR-END MATCH will do the trick.
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