On March 27th, the Coronavirus Aid, Relief, and Economic Security Act was signed into law and Congress passed a long-awaited for “universal” giving incentive, this is particularly beneficial for taxpayers who do not itemize their deductions.
If you are someone who does not itemize on your taxes:
The CARES Act makes a new above-the-line deduction available for total charitable contributions of up to $300 per taxpayer. The above-the-line adjustment to income will reduce your AGI, and thereby reduce taxable income. Additionally, you will not have to itemize other items to claim this deduction (Section 2204 of the CARES Act).
The incentive applies to cash contributions made in 2020 and can be claimed on tax forms next year.
If you are someone who itemizes on your taxes:
The CARES Act also lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent. For corporations, the law raises the annual limit from 10 percent to 25 percent. (Section 2205 of the CARES Act).
What does this mean for you? You can support Habitat Lake-Sumter’s mission and receive new tax benefits typically reserved for higher thresholds of giving.
The duration of the COVID-19 pandemic has caused a public health emergency to bring a spotlight to the housing crisis. The uncertainty so many of us feel today, many families have felt for a lifetime- if not generations.
The time is now: to begin the work of building back our community, the foundation is the place to start. Living in a safe, healthy, and affordable home alleviates the burden of unreliable rent costs and out-of-reach mortgages; a home with Habitat gives families the opportunity to build a better future and make today more manageable.
The CARES Act is the first giving incentive Congress has passed in response to a disaster or national emergency—an acknowledgement by Congress that the work of nonprofits, like Habitat Lake-Sumter, is an essential service.