CARES Act 2020

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

The inclusion of an expanded charitable giving incentive is a critical acknowledgement 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 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 makes a new 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). 

To qualify, you would have to give a donation to a qualified charity. If you have already made your donation since January 1 that contribution counts toward the $300 cap. 

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 2020 adjusted gross income, on itemized 2020 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 until 2021. This includes distributions from defined benefit pension plans and 457 plans.