The CARES Act – Coronavirus Aid, Relief and Economic Security Act increased tax incentives for both individuals and corporations on charitable gifts made for any purpose to qualified nonprofits in the 2020 tax year.
Donors to Grand View Health Foundation may deduct up to $300 if they file a single taxpayer return or if married and filing jointly. This above-the-line deduction is allowed even if the taxpayer’s deductions, including charitable gifts, do not total more than the standard deduction of $12,400 for a single taxpayer or $24,800 for those married filing jointly. In other words, you can take the standard deduction and still take an additional deduction for your charitable gifts.
Additionally, for individuals making cash contributions in 2020, you can now elect to deduct up to 100% of your Annual Gross Income (AGI).
Corporations: Cash contributions up to 25% of taxable income can be deducted (an increase from 10%).
Not new but still effective: 70 ½ or older? Make a “Tax-Free” Gift Through Your IRA.
Qualified Charitable Distribution (IRA Rollover). The Qualified Charitable Distribution (QCD) is an excellent way to show your support for Grand View Health Foundation and receive tax benefits in return. As you plan your required minimum distributions (RMD), consider using your IRA account to make the most of your charitable giving. You receive a tax benefit even if you take the standard deduction!
Of note: while the SECURE Act raised the age to 72 for Required Minimum Distributions, donors may still make QCD gifts starting in the year they turn 70 ½.
For more information, visit the IRS website, consult with your tax preparer or contact David Alderfer, Director of Development at 215-513-3938.