Important Tax Advantages for 2020
With the passing of the CARES Act back in March of this year, there have been some significant changes to tax deductions for both individuals and for businesses. We want to make you aware of how these changes could benefit you and allow you to better make decisions for year end giving. Here is a brief overview of what you need to know. For more detailed information, check out this article.
1. If You Take The Standard Deduction
This applies to most people (about 90% of households). This year you are allowed to deduct up to an additional $300 on top of the standard deduction for charitable giving. This means that your Adjusted Gross Income (AGI) could be reduced by up to an additional $300.
2. If You Itemize Your Deductions
This applies to about 10% of households. This year you are allowed to deduct up to 100% of your Adjusted Gross Income (AGI) for charitable cash contributions. This is an increase from the previous amount of 60%.
3. If You Own A Business
This year you are allowed to deduct up to 25% of your taxable income for charitable contributions coming from your business. This is an increase from the previous amount of 10%.
Please note that we are not tax professionals at Front Range 🙂 We just want to make sure that everyone is aware of the potential tax advantages that are available for this year. All gifts for the 2020 tax year must be received or postmarked before January 1, 2021. For a list of different ways you can give to Front Range, check out this page. If you need any help with year end giving or have any questions, feel free to contact Mike Surratt.
Each year since Front Range started, we have given away every dollar that comes in during our Christmas services. This money goes back into our community through a variety of ways:
- It helps to fund our benevolence fund that allows us to respond to various needs that arise throughout the year. We have been able to help people pay their rent, utilities, and other bills as well as have a place to stay at night and provide food for their family.
- It helps us support local schools. We love to be able to bless teachers and schools every year by providing breakfast at different times, buying things off of their wish list, helping to pay for student’s lunches and field trips, and much more.
- It helps us support our local partners. We have a variety of local organizations that we support in a number of different areas. Here are some of those partnerships:
No More Locked Doors – Helping to empower female parolees by providing direct and personalized mentorship, practical solutions to every day problems, resources to successfully re-enter society, and the opportunity to experience the joy of Jesus.
Aging Resources of Douglas County – Aging Resources of Douglas County connects older people to vital services, information, and resources that promote aging with independence and dignity. We believe that the voice of every senior should be heard and respected, and that the whole community should join together to support older adults in their golden years.
Hope’s Promise – Through our ministry of adoption, orphan care and foster care we walk with expectant parents, hopeful adoptive families, foster families, and orphaned children around the world through life’s difficult chapters. Together, we write a story of hope.
Wellspring Community – Wellspring exists to provide educational, enrichment and business enterprise opportunities to adults with special needs such that they are empowered to live full, productive and satisfying lives in a God-centered and spiritually nourishing environment.