Frequently Asked Questions
If I make a donation, how might the CARES Act help me next tax season?
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020, and changed parts of the tax code related to charitable contributions. Here’s how giving to Ipas could help you next tax season:
- Extended charitable deduction for non-itemizers: Taxpayers who take the standard deduction, rather than itemizing their deductions, will be able to claim a charitable deduction for up to $300 for cash donations made in 2022.
- Higher deduction limits: In 2021, individuals will be able to deduct cash gifts to the extent of their entire adjusted gross income, instead of being capped at 60% of their adjusted gross income. In addition, the deduction limit for corporations was raised from 10% to 25% of a corporation’s taxable income. This tax benefit has not yet been extended for 2022.