Looking to help out various charitable organizations during these crazy times?
The IRS has made temporary changes to charitable contribution rates for 2020 tax returns. They have suspended the normal maximum allowable deductions capped at 60 percent of your Adjusted Gross Income (AGI) and now allow individuals to deduct qualified contributions of up to 100 percent of their AGI in 2020.
C-Corporations can deduct qualified contributions of up to 25 percent of its taxable income this year, up from just 10 percert of income in prior years.
Contributions that exceed that maximum allowable amount can carry over the excess to the next tax year. For 2020, a special rule is also in effect allowing enhanced deductions by businesses for contributions of food inventory for the care of the ill, needy or infants.
To qualify, your contribution(s) must be:
- a cash contribution;
- made to a qualifying organization;
- made during the calendar year 2020
To find out more, please visit their post at: https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions