2020 TAX BENEFITS
The State of Missouri allows for taxpayers who donate cash to a food pantry, homeless shelter, or soup kitchen to claim a tax credit. The credit claimed shall equal 50% of the value of the contribution or donation made. Credits cannot exceed $2,500 per taxpayer per year.
Please call our Associate Director, Walker Hill, at (314) 231-8209 and we will make sure to send you a signed Form MO-FPT that you can utilize when filing your 2020 taxes.
Click HERE for more details on the Form MO-FPT
Due to COVID-19 the Federal CARES Act has made a number of changes to the 2020 tax code.
For donors who do NOT itemize their deductions:
Section 2204 of the CARES Act allows taxpayers to take a limited above-the-line deduction for charitable contributions in 2020. Traditionally, the charitable contribution deduction is a below-the-line deduction available only to taxpayers who itemize. However, the CARES Act allows taxpayers that do not itemize to deduct up to $300 in cash contributions made to qualifying charitable organizations and treat such contributions as an above-the-line deduction when computing adjusted gross income. Section 2204
For donors who DO itemize their deductions:
Section 2205 of the CARES Act temporarily modifies charitable contribution limitations for individuals, corporations, and food inventory contributions. Charitable contribution deductions are subject to various percentage limitations, and the CARES Act temporarily modifies such limitations. For individuals, the Act modifies the limitation from a maximum of 60% to 100% of adjusted gross income. If an individual’s contributions exceed the 100% limitation, the excess contributions may be carried over for the next five tax years.
The modification of limitations applies to cash contributions paid in the 2020 calendar year and where the taxpayer has elected the application of this provision. The modifications made by this provision apply to taxable years ending after December 31, 2019. Section 2205