New Tax Benefits for Charitable Donations

As a part of the CARES Act, Congress expanded tax benefits for charitable donations made in 2020, even for taxpayers who take the standard deduction. Now more than ever, if you are in a position to donate, we need your support.

• A temporary charitable credit has been enacted for 2020 for those who normally take the standard deduction. This credit will allow taxpayers who do not currently itemize their deductions to claim an “above the line credit” for donations to charities like Shooting Star Adventures for cash donations up to $300 through December 31. The $300 cap applies to individuals and married couples equally, i.e., a married couple would not be able to take a $600 deduction. Donations to donor-advised funds and supporting organizations are not eligible for this deduction.
• For those who itemize deductions, the adjusted gross income (AGI) limits on charitable donations are suspended or increased for cash gifts made by individuals and corporations in 2020. The 50% AGI cap for individual taxpayers who itemize has been suspended. Taxpayers who itemize are eligible to take charitable deductions for donations up to 100% of their AGI for the 2020 tax year. The AGI cap for corporations has been increased from 10% to 25% for corporate tax years ending in 2020.

For more information, please contact a tax professional. For information about giving to Shooting Star Adventures, please contact Board President Erin McPherson at shootingstaroregon@gmail.com 971-328-1653 but hurry – there are only a few days left to take advantage of this benefit.

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