While many in our community are navigating the CARES act for reasons pertaining to their small business or for income assistance during this time of uncertainty, there is also a charitable contribution provision that is worth noting for members of the Whitewater community looking to support COVID-19 relief efforts as well as continuing the efforts of other non-profits.
The CARES Act creates a $300 “nonitemizer” deduction for 2020. For individuals who do not itemize deductions on their tax returns there is still an incentive for increased charitable giving.
The deduction:
- Is in full effect as of Friday, March 27 and will apply to donations made for all of 2020
- Only for people who do not itemize their taxes
- Donors who itemize their taxes are eligible for the existing charitable deduction
- Only for cash donations (not in kind)
- Can be used by the charity for any purpose (not limited to COVID-19 relief efforts)
