Did you know you can take a deduction for charitable giving in 2020 even if you don’t itemize your taxes? This is good news for one of the most generous countries in the world. Charitable contributions help organizations like Outlook Enrichment fund programming to help our clients. Like many nonprofits, we have been trying to find new ways to better serve our clients during this pandemic. We know many of our loyal donors are also facing hardships due to the pandemic and this deduction can help your donation for the blind go even further.
Congress realized many people in our country are struggling during the COVID-19 public health crisis. They included a provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, intended to provide some relief for charitable organizations like Outlook Enrichment. Section 2104 of the CARES Act permits eligible individuals who do not itemize deductions to deduct $300 of qualified charitable contributions as an “above-the-line” deduction. This is an adjustment that helps determine adjusted gross income (AGI) for tax years beginning in 2020.
This isn’t the first time Congress has allowed non-itemizers to deduct for charitable contributions. They did so in the Economic Recovery Tax Act of 1981, although the rules and amounts of deductions were different.
How do I qualify for the deduction?
Eligible individuals may deduct up to $300 in qualified charitable contributions made to a qualified charitable organization like Outlook Enrichment. Amounts over $300 may not be carried over to future tax years or claimed as an itemized deduction. Deductions under the CARES Act must be made in cash, which includes checks and credit cards.
Who is considered an eligible individual?
An individual eligible to claim the deduction is any individual who doesn’t elect to itemize deductions for 2020. The $300 limit per filing unit applies regardless of the filing status. This means that if you are married and filing jointly you can deduct $300. Another benefit of this provision is that you don’t need to include documentation when you file gifts $250 and under, but you must keep proof of cash receipts. All gifts exceeding $250 need to include the receipt or proper documentation when filing.
For those who itemize deductions, the CARES Act lifted the charitable giving deduction cap to 100 percent of adjusted gross income for individuals and joint filers and up to 25 percent for corporations. That’s up from the 60 percent that was allowed under the Tax Cut and Jobs ACT of 2017 (TCJA). This means that for 2020, if your AGI is $250,000, you can deduct $250,000 in charitable contributions. There’s never been a better time to support Outlook Enrichment. Don’t miss the opportunity to deduct charitable gifts this year and help us help more individuals with vision loss.
How your dollars help Outlook Enrichment.
If you’re in the 22 percent tax bracket, deduct your gift and save $66 on your taxes so your donation only really costs you $234. That donation for the blind will provide 18 hours of services for your blind neighbors. If you’re married-filing-jointly, a gift of $600 which only costs you $468 could deliver up to 36 hours of adaptive technology training or confidence-boosting activities for people who cannot see well or at all.
Outlook Enrichment’s mission is to create opportunities for people living with vision loss to achieve personal and professional growth in an inclusive community. We help our neighbors living with vision loss and blindness live life independently, engage in their communities with confidence and continue to do the things they love through our programs.
Please consider making a DONATION for the blind today to help us change the outcomes for our neighbors living with vision loss and blindness. Help us celebrate that there is vision beyond sight for each of them. We appreciate your support. We’ll continue to provide training and programs during this pandemic and beyond.