Charitable tax deductions through CARES Act are expiring Dec. 31.

Charitable tax deductions through CARES Act are expiring Dec. 31.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides increased tax incentives for charitable giving but several particularly advantageous provisions will expire on 12/31/20.

For those who itemize their deductions, the CARES Act allows for cash contributions to qualified charities, such as House with a Heart Senior Pet Sanctuary, to be deducted up to 100% of your adjusted gross income (AGI)—up from 60%.

Those who take the standard deduction may now deduct up to $300 in qualified charitable contributions of cash to House with a Heart Senior Pet Sanctuary or other qualified charities. Normally, no deduction is permitted for non-itemizers.

Please remember, too, that gifts from your IRA are still a smart way to give. Required minimum distributions from retirement accounts are suspended for 2020. However, individuals who are 70 ½ or older still can make a qualified charitable distribution of up to $100,000 from their IRAs.

You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions. Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

We’re so grateful for your continued support of our mission and the senior and special needs pets who count on you every day.

We encourage you to consult with your tax advisor or counsel for advice as you consider your philanthropic and financial plans.