Now is the time to donate with the new CARES Act!
On March 27, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a $2.2 trillion emergency relief bill aimed at providing relief to the American people and businesses in response to the coronavirus. In addition to facilitating direct financial relief to affected nonprofit organizations, the CARES Act also creates charitable giving incentives for donors to 501(c)(3) nonprofit organizations like Habitat for Humanity of Northern Virginia
Here are a few of the changes that have come from the recent CARES Act:
- For donors who choose to itemize, for the 2020 tax year, deductions for cash contributions to public charities can now qualify for up to 100% of adjusted gross income (normally limited to 60%).
- If you have retirement account assets, for the 2020 tax year, required minimum distributions from individual retirement accounts are waived. Charitable giving from IRAs still is a powerful tool in lowering ordinary income tax.
- For the 2020 tax year, tax filers who do not itemize their deductions are eligible to claim an “above the line” or “universal” charitable deduction of up to $300.
- For the 2020 tax year, corporate givers can now qualify for deductions up to 25% of taxable income (normally limited to 10%).
We encourage you to reach out to your advisor, your accountant, and your attorney if you have any additional questions since each person’s situation will be different.
Please consider donating to Habitat NOVA as we want to continue to work to build a better Northern Virginia for families through affordable homeownership.