The $2 trillion federal stimulus package includes some changes to charitable income tax deductions that may make it advantageous for you to increase support to The Climate Center.
Caveat: Please review these guidelines with your tax advisor.
Below are some key takeaways as we understand them:
- For those who do itemize, individual donors and corporate givers’ limits on the percent of AGI (adjusted gross income) for charitable deductions will be increased or eliminated. This could be significant if you fit into this category.
- For individuals, the 50% of adjusted gross income limitation would be raised to 100% of AGI for 2020.
- For corporations, the 10% limitation would be increased to 25% of taxable income.
- There is also a provision for how retirees can divert even more to charity through their IRAs because of a stimulus law suspending the required minimum distributions for 401(k)s and IRAs, opening the window to tax savings.
- For those individuals who no longer itemize, the new law allows them to take up to a $300 charitable income tax deduction for cash donations made in 2020. The $300 tax deduction is in addition to the standard deduction.
For more information on how this might apply to you and your charitable giving, we urge you to contact your tax advisor. For additional background information, read this helpful article here. The Climate Center and its staff are not professional tax advisors. We provide this information as a courtesy to our supporters and partners. We strongly encourage you to contact your personal financial or tax advisor or accountant to determine what this new law might mean for you.
The COVID-19 pandemic is a stark reminder that we ignore the science at our own peril and early action saves lives. Scientists are increasingly warning of catastrophic impacts from climate change if we don’t act now. To avert dire consequences and inspire greater action worldwide, California must step up its climate leadership.
As always, we are deeply grateful to you, our supporters, who make our urgent efforts for speed and scale greenhouse gas reductions possible.
With wishes for good health during these challenging times.