New Tax Advantages
for Donors in 2020
2020 has been a difficult year for our country, our community and many of our friends and neighbors. Even before the current crisis, 50% of Broward County households were either living in or one emergency away from poverty. For many families, this pandemic was that one emergency. But there’s a new way you can help!
There is a new financial incentive to give generously to qualifying charities, including United Way of Broward County. The new universal tax break for charitable donations was included in the final $2 trillion COVID-19 stimulus package signed into law this past March and will go into effect starting with the 2020 tax year. It is commonly known as the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).
Now is the perfect time to take advantage of this “above-the-line” opportunity and give to qualifying charities like our United Way — providing much needed critical services to our community during this health and economic crisis now, and into the future. Since 1939, we have been changing lives for those who need a hand up, not a hand out, right here in our community — before, during and after emergencies.
Here is a summary of the tax benefit break down for those taking standard deductions, and for those taking the itemized deductions:
For people who do not itemize and take the standard deduction, the CARES Act will allow you to take a tax deduction for contributions made to qualified charitable entities up to $300 per year starting in 2020—this deduction is “above-the-line,” meaning that that is deducted from the individual taxpayer’s income prior to the calculation of their adjusted gross income. As a reference, the 2020 Standard deduction is $12,400 for individuals and $24,800 for married couples filing jointly. For now, this deduction applies for 2020 and beyond.*
For people who itemize their deductions, the CARES Act temporarily waives the 60% of adjusted gross income limit for contributions to qualifying charities in 2020. This means that you can deduct all of your charitable contributions for this tax year to up to 100% of your adjusted gross income.
To learn more please visit the government’s CARES Act website.
Please consider this an added incentive to donate—or donate more—to our United Way when our community needs you most. UNITED we will fight for the health, education and financial stability of every person in our community.
Donate to United Way of Broward County today.
*Note that the contribution must be either by cash, credit card, check or workplace payroll deduction. Donations of goods or services are not eligible. You can’t claim this deduction if you itemize deductions on your 2020 tax return (i.e., you must claim the standard deduction). This is provided for informational purposes only. Please consult your accountant or financial planner.