{"id":74616,"date":"2020-12-10T15:56:51","date_gmt":"2020-12-10T23:56:51","guid":{"rendered":"https:\/\/www.worldvision.org\/?p=74616"},"modified":"2020-12-10T15:56:51","modified_gmt":"2020-12-10T23:56:51","slug":"how-cares-act-affects-your-2020-tax-deductions","status":"publish","type":"post","link":"https:\/\/www.worldvision.org\/charitable-giving-news-stories\/how-cares-act-affects-your-2020-tax-deductions","title":{"rendered":"How the CARES Act can affect your 2020 tax deductions"},"content":{"rendered":"\n

Are you seeking out maximum tax deductions for 2020? The charitable contribution limit for 2020 has changed: We spoke with one of our experienced finance professionals for insight on this year’s Coronavirus Aid, Relief, and Economic Security (CARES) Act to help break down how the act’s removal of the cap on charitable cash contributions could help you.<\/p>\n

Understanding the CARES Act and its impact on your taxes<\/h2>\n

In March 2020, a tax benefit was introduced via the coronavirus stimulus bill, labeled as the CARES Act. It’s primarily known for providing stimulus payments, but did you know it also included potential relief for your taxes, too?<\/p>\n

Intended to help 501(c)(3) qualified organizations affected by decreased contributions, the CARES act removes the income-related cap on charitable contributions.<\/p>\n

Breaking down the CARES Act<\/h2>\n

I sat down with World Vision’s senior director of accounting and reporting, Eric Wetterling, in the Finance division to understand the tax benefit. “In a normal tax year, if you itemize, you can elect to deduct charitable contributions equal to up to 60% of your adjustable gross income (AGI),” explains Wetterling. “However, in 2020, the CARES Act allows you to deduct up to 100% of AGI.”<\/p>\n

Here’s an example when you itemize:<\/strong><\/p>\n

Adjusted gross income: $100,000<\/p>\n