It is well-known that the Coronavirus Aid Relief and Economic Securities Act (the CARES Act) is coming through in big and necessary ways with direct financial relief for FlagShelter and so many other nonprofits around the country. What is less well-known is that the CARES Act also includes significant charitable giving benefits and tax relief with the new charitable income tax deduction.
This charitable income tax deduction applies to individuals who take the standard deduction (non-itemizers) and allows for a deduction of up to $300 per person ($600 if filing as a married couple). This is an above-the-line deduction for any charitable contributions made in the 2020 tax year.
This means that if you are a non-itemizer, on your 2020 return (filed in 2021) you can claim up to a $300 income tax break for donations made to nonprofit organizations. And guess what?! This is in addition to both the standard deduction AND the Arizona Charitable Organization Tax Credit (the AZ Charitable Org. credit alone is up to $400 for a single person and $800 for a married couple).
So now you know – it’s time to Give and Get Back!!!