CARES Act Extension

How the CARES Act Will Impact Your Charitable Giving to the Apostles

The inclusion of an expanded charitable giving incentive is a critical acknowledgment by Congress that the work of nonprofits such as the Apostles of the Sacred Heart of Jesus is extremely important in these times. The CARES Act was signed into law on March 27, 2020, and extended on December 27, 2020, through the end of the 2021 tax year. It offers unique incentives for those who wish to support the mission and ministry of the Apostles of the Sacred Heart of Jesus.

Here’s How it Works

New Deduction Available: The bill extends the deduction available for up to $300 per taxpayer ($600 for a married couple) in annual charitable contributions. This is particularly beneficial to people who take the standard deduction when filing their taxes (in other words for taxpayers who do not itemize their deductions).  

New Charitable Deduction Limits: As of April 2020, individuals and corporations that itemize charitable gifts can deduct much greater amounts of their contributions. Individuals can elect to deduct cash contributions, up to 100% of their annual adjusted gross income, on itemized 2020 and 2021 tax returns. This is up from the previous limit of 60%. 

Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.

Required minimum distributions waived in 2020 for most donors: RMD for individuals over age 70 ½ are suspended for 2020. This includes distributions from defined benefit pension plans and 457 plans. This benefit has not been continued for the 2021 tax year.