Did you know that a recently passed legislation offers you a way to support charities you care about, like Children’s Home & Aid, while receiving potential tax savings?
The Coronavirus Aid, Relief, and Economic Security Act, (CARES Act) was signed into law in late March 2020 to provide relief from the economic hardship of the pandemic. It has several tax incentive opportunities that you need to know about!
- Giving Cash: You can deduct cash gifts to charities up to $300 per taxpayer ($600 for married couples) even if you do not itemize deductions! This allows donors of all income levels to receive tax benefits for their charitable gifts – a win/win!
- Also, for 2020 only, the act allows individuals who itemize to deduct cash gifts up to 100% of their Adjusted Gross Income.
- Required Minimum Distributions (RMD) Waived in 2020: For the year 2020, there will be no mandatory distributions required from Individual Retirement Account (IRA) holders of any age. HOWEVER…
- Qualified Charitable Distribution (QCD) still possible! Although the required minimum distribution is waived for 2020, donors over age 70.5 can still make a tax-free from their IRA, up to $100,000. This could result in tax savings for you – your tax preparer can help you determine if a QCD is a good way to make a gift.
Gifts of appreciated stock are another great way to support the work of Children’s Home & Aid while achieving potential tax savings. Click here for more information
If you would like any additional information or have any questions, please contact Mary Kozil at Children’s Home & Aid at email@example.com or call 847-217-2168. Thank you for helping make life better for thousands of children and families across Illinois!