Coronavirus Aid, Relief, and Economic Security (CARES) Act
How the Trump Stimulus Bill Helps You Support Freedom Alliance
To protect the U.S. economy and help charitable organizations like Freedom Alliance continue our critical work, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020. This historic legislation allows you to contribute to Freedom Alliance while enjoying unprecedented tax benefits. Important provisions of the bill include:
Universal Charitable Deduction: Even if you don’t itemize your taxes, you can now reduce your taxable income by deducting up to $300 in donations to charitable organizations like Freedom Alliance. Normally, deductions only go to those who itemize. But until December 31st, you can deduct up to $300 of cash contributions – in one gift or several gifts that add up to $300.
New Deduction Limits for Itemizers: For those who itemize their taxes, you can deduct cash contributions to organizations like Freedom Alliance up to 100 percent of your Adjusted Gross Income (AGI). Normally, the limitation was 60 percent of AGI, but the CARES Act changes that. Only cash contributions made through December 31, 2020 qualify. Donations to a private foundation or a Donor Advised Fund do not qualify. Contributions in excess of total AGI may be carried forward.
New Deduction Limits for Corporations: The CARES Act also allows greater deductions for corporate charitable donations by increasing the limit from 10 percent of taxable income to 25 percent of taxable income.
Stimulus Checks: Americans will soon receive stimulus checks of up to $1,200 per taxpayer ($2,400 for couples who file jointly). The amount of the checks will vary depending on your income. If you are financially secure at this time, you might consider donating your stimulus check or spending it at a local business that is fighting to keep Americans employed.
Tax Day Extended: The deadline for filing your taxes has been extended by the IRS from April 15 to July 15. Please check with the tax authorities in your state to determine if your state filing deadline has also been extended.
During this crisis, as we always do, Freedom Alliance is caring for the needs of our military at home and abroad, many of which are related to the COVID epidemic.
Your support of our efforts is greatly appreciated. Thank you!
Please be sure to consult your tax advisor or legal counsel as you consider your options for charitable contributions.