Thanks to the new CARES Act, for 2020 there is no limit to the deductions you can take for charitable contributions. You can support causes close to your heart while enjoying added tax benefits. Please consult with your tax and legal advisor and consider St. Agnes as your benefactor.
|Tax Incentives for:||2020||Before 2020|
|Deduction cap of 100% of adjusted gross income||Deduction cap of 60% of adjusted gross income|
(standard deduction - not itemized)
|For 2020, filing taxpayers who normally take a standard deduction can make cash donations up to a $300 limit and claim as a charitable deduction||$0|
|Individuals age 70 ½ or older who take Required Minimum Distributions from IRA accounts and not dependent on IRA entirely for living||For the year 2020, there will be no mandatory distributions from retirement accounts (whatever the age of the owner), thus allowing those accounts to recover. The minimum age for making a tax-free transfer from an IRA to a charity remains at 70½, and the annual limit remains at $100,000.However, since cash gifts are deductible in 2020 to the extent of adjusted gross income, a person could withdraw and then contribute a larger amount—with the deduction offsetting the taxable withdrawal||For 2019, Individuals age 70½+ could donate up to $100,000 in IRA assets (RMD) directly to charity annually without taking the distribution into taxable income|
|Corporations||Can deduct up to 25% of taxable income||Can deduct up to 10% of taxable income|
For more detail please see the following: