CARES Act Tax Benefits to Donors

Your donation may qualify for an increased charitable deduction on your federal taxes.

If you take the standard deduction:
The CARES Act allows for a one-time, above-the-line deduction of up to $300 ($600 for married couples filing jointly) in donations to qualified charities like MRFRS in 2020. Because this is an “above-the-line” deduction, it will reduce your total taxable income by up to $300 (or $600 if filing jointly).

If you itemize your deductions:
The CARES Act allows you to deduct up to 100% of your AGI in contributions to qualified charities. Deductions of gifts in excess of 100% of AGI can be rolled over for use in future years. Prior to the CARES Act, an individual itemizing their deductions could only deduct 60% of adjusted gross income (AGI) for charitable giving.

If your organization wants to make a corporate gift:
The CARES Act now allows a deduction of up to 25% of the company’s adjusted taxable income for corporate gifts to qualified charities in 2020. The former limit was 10%.

Now might be the purrfect time to invest in MRFRS programs that support cats and the people who care for them. Signed into law on March 27, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) creates charitable giving incentives for donors to support the critical work of nonprofit organizations like the Merrimack River Feline Rescue Society.

This information is not intended as legal or tax advice. Please consult with your tax advisor for specific guidance on these new tax law changes.