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Thinking about your end-of-year giving? The CARES Act may help

On March 27, 2020, the CARES Act was signed into law to help provide relief in response to the economic fallout of the Covid-19 pandemic in the United States. Part of the CARES Act relief package includes measures that incentivize charitable contributions by both individuals and corporations. Some of the CARES Act incentives include:

  • An above-the-line tax deduction for cash donations to qualified charitable organizations, up to $300 for Individuals and $600 for married couples filing jointly, who take the standard deduction. This deduction will reduce the donors AGI when making qualified charitable contributions to public charities.
     
  • A 100% deduction of adjusted gross income (AGI) for qualified charitable cash contributions to public charities, for 2020 only, for individual taxpayers who itemize.
     
  • Minimum distributions (RMDs) are waived for 2020. This waiver of RMDs for 2020 is not limited to those who are affected by COVID-19. The waiver of RMDs applies to:
    • Any IRA owner who is 72 or older in 2020.
    • Any IRA owner who turned 70 ½ in 2019, did not take an RMD in 2019, AND planned to take a delayed RMD by April 1, 2020.
    • All beneficiaries of As for decedents who died prior to 2020.
       
  • Withdrawals from an individual’s IRA in 2020 are no longer deemed to be an RMD. And any individual who has already taken an RMD withdrawal in 2020 may now transfer what was withdrawn back into the IRA within 60 days of withdrawal date.
     

Please consult with your tax advisors as to whether these or additional CARES Act opportunities may be right for you. But do not delay. Some of these tax incentives expire on December 31, 2020. If you have questions about gifts to United Methodist causes, contact the United Methodist Foundation of West Ohio at 614-844-6200 x247 or by email to Susan Black at sblack [at] wocumc.org