Choosing to donate to the Maryland SPCA during challenging times like the COVID-19 crisis is an act of faith. Faith that the future, although unknown now, will turn out alright. We’re grateful to everyone who made a gift in the past few months. But even faith can sometimes use a little help.
If you’re thinking about giving to the MD SPCA or any other charity, the Coronavirus Aid, Relief, and Economic Security (CARES) Act can help. We want to help you take advantage of this opportunity.
Simply put: the CARES Act allows you to give more to your favorite charities and get more from your 2020 tax deductions.
New to paying taxes? A “deduction” lowers the amount of your income that’s taxable, meaning you’ll owe the government less money. Every deduction is for a set amount. The “universal” or “standard” deduction, which is the same for every taxpayer regardless of their income level, is used most frequently. Other taxpayers choose to use “itemized” deductions, which vary based on their personal situations.
I take the standard deduction. How does the CARES Act help me?
- Individual filers can deduct up to $300 in gifts to public charities from taxable income on 2020 returns.
- Married joint filers can deduct up to $600 in gifts to public charities.
- That’s an increase from $0 in 2019!
I itemize my charitable deductions. What about me?
- The more of your adjusted gross income you give as an individual or joint filer, the more you can deduct, up to 100 percent!
- That’s up from 60 percent in 2019!
What are the limitations?
- Deductions apply to cash gifts only. Gifts of stocks or property aren’t included.
- Gifts to a donor-advised fund or private foundation don’t count toward the deduction.
What’s the bottom line? In addition to powering your charity of choice this year, your gift will receive an extra deduction at tax time. Consider leveraging the CARES Act to do something special for the MD SPCA.
Consult your accountant or tax professional to learn how CARES Act deductions can work for you.
Interested in making a gift? Visit mdspca.org/donate.