CARES Act Offers New Tax Deduction
In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic stimulus package legislated to battle the harmful effects of the COVID-19 pandemic. One aspect of the legislation provides immediate relief for nonprofits such as Saint John’s Prep. But for it to bring relief to the Prep School, or any other nonprofit, your help is needed.
The legislation allows for a new deduction in your taxes. For the current year, you can claim cash donations up to $300 in annual charitable contributions. This deduction is only available to people who take the standard deduction (taxpayers who do not itemize their deductions). It is an “above the line” adjustment to income that will reduce a donor’s 2020 adjusted gross income (AGI), thereby reducing taxable income. You calculate it by subtracting the amount of the donation from your gross income. Note: a contribution to a donor-advised fund (DAF) does not qualify for this new deduction.
This legislation provides an opportunity for you as a taxpayer and a supporter of Saint John’s Prep, or any of your favorite nonprofits, to make a difference and receive greater tax breaks. However, the only way this legislation helps is if you make a gift today. To take advantage of this benefit and make a difference in this lives of Prep School students, go to sjprep.net/give or mail your gift before December 31, 2020. Thank you!