The holiday season is a time to give, and with the passing of the CARES Act and SECURE Act, there are some excellent charitable tax incentives if you make your charitable gift before December 31, 2020.
Here’s what you need to know:
- If you itemize your tax deductions, for 2020 only, you may deduct cash gifts to qualified organizations up to 100% of your adjusted gross income (AGI) instead of the usual 60% limitation.
- You may take a charitable deduction on your 2020 tax returns for cash donations up to $300 to any qualified organization.
- The Required Minimum Distribution (RMD) age has increased from 70 ½ to 72 for retirement assets and you may also suspend your RMD for 2020. However, you can still make a Qualified Charitable Distribution if you are at least 70 ½ from your retirement account up to $100,000 without recognizing the income.
Your year-end gift will help us make critical missions happen to get people to the life changing care they need!