Good news for Kids First (and other nonprofits) and good news for U.S. taxpayers.
All U.S. taxpayers can now take an “above-the-line” deduction for charitable gifts up to $300 per individual and $600 per couple in 2020. In other words, individuals will receive this dollar-for-dollar deduction without having to itemize; they can take this deduction on top of the standard deduction. The CARES (Coronavirus Aid, Relief and Economic Security) Act just passed by Congress will help charities like Kids First secure needed support.
Kids First Development Director Libby Slappey states, “At Kids First, we rely heavily on gifts from individuals to provide needed services to kids. We know that some donors aren’t in a position to donate now, so we are grateful for the help this offers to those who can continue to support our work.”
Our work is supported in many creative ways. One of our loyal donors told us her idea: “There are a lot of organizations and people who need help right now. Since my employment is steady, I’m sharing my $1,200 federal relief money with Kids First so that you can help children who need support through this crisis.” We know the most generous people!
The CARES Act also increases the limits on charitable deductions for individuals and corporations in 2020. Previously, C corporations were limited to deducting 10% of their taxable income but now may deduct up to 25%. In addition, individuals were limited to deducting 60% of their adjusted gross income and can now deduct 100%.
If you have questions, please consult your tax advisor.