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Tax Benefits

Colorado State Tax Credit

What that means is that a taxpayer who makes a monetary contribution of $250 or more to the ASC is entitled to a Colorado Income Tax credit of 25% of the value of the contribution up to a maximum credit of $100,000 per year. In-kind contributions are eligible for a 12.5% in-kind credit. In-kind contributions include employee labor, materials, furniture, computer equipment or stock. With federal deductions for donations, this can mean that a $10,000 donation may only cost the donor $5,000 or less. Contact Lee Bergland with questions on how to utilize this tax credit.

The CARES Act: Two New Federal Tax Benefits to Donors

Universal Deduction for Donations Up to $300

For the over 9 out of 10 people who no longer itemize their charitable giving, the CARES Act will allow these individual taxpayers to deduct donations to charity of up to $300 on their 2020 federal tax return, even though they take the standard deduction. Married-filing-jointly taxpayers will get an above-the-line deduction of up to $600.

Raising the Charitable Giving Deduction Cap

For those donors who are still able to itemize their deductions, and therefore directly write off gifts to charity, the current deduction cap is 60% of adjusted gross income. Corporations are able to deduct charitable donations up to 10% of taxable income.

The CARES Act lifts these caps to 100% for individuals and joint filers, while corporations will see their cap lifted to 25% for 2020. These are truly substantial changes to the tax treatment of donations. For individuals, it could theoretically mean zero taxable income if someone gives big.

For example, if John Taxpayer has an AGI of $175,000, he would normally be able deduct up to $105,000 for gifts to charity. With the temporary changes in the CARES Act, John could now deduct up to his full AGI of $175,000 if he gives that much to charity in 2019. The math works the same way for corporations.

ReFUND CO

Coloradans can give all or part of their state income tax refund to the Adaptive Sports Center to help continue our mission and vision. ReFUND CO allows you to be in charge of where your donation goes, just by simply following these steps:

  • Decide how much of your refund you want to donate.
  • Enter Adaptive Sports Center and our registration number 20023003326 in the Donate to a Colorado Nonprofit Fund line on your state income tax return or software. You can also give this information to your tax preparer when you share your tax documents.

Learn more about the program at RefundWhatMatters.org.

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