The biggest charitable giving tax break is for people who don’t itemize. You can deduct up to $300 for charitable cash gifts. Thanks to Charlene Quah, CPA, CTC, owner of Houston’s XQ CPA for her video explaining this break that Congress passed as a part of the CARES Act (and why you should use it to support COCI).
30 Important Tax Tips You Must Know to Reduce Your Taxes - #6 Charitable Donations
Other deductions include:
Donors who itemize deductions can deduct up to 100% of their adjusted gross income (AGI) as a result of the CARES Act, up from the 60% cap that was imposed in 2017.
Corporations can now deduct up to 25% of their taxable income, up from 10%.
Update – The Stimulus Bill passed by Congress Monday extends these deductions for next year’s taxes as well. This is not meant as tax advice, so ask your tax or legal professional how this impacts your taxes.
Please consider making an end-of year donation to COCI to support the launch of our GEMS program for middle school. Click here to donate now!
Want to know more? The team at XQ CPA prepared this special video interview with COCI’s President, Ken Wells. Take a look.