Because of the 2020 CARES Act
- You can take a charitable deduction against up to 100% of your 2020 adjusted gross income for federal tax purposes.
- You can advance your 2021 giving before December 31 due to the CARES Act, allowing for a cash charitable contribution to erase up to 100% of your adjusted gross income. This is the first time since 2005 the IRS has allowed this.
3. You can claim an additional “above-the-line” deduction for charitable gifts made in cash of up to $300. If you are not itemizing on your 2020 taxes, you can claim this new deduction.
More traditional year-end options for giving available this year
- IRA Rollover. If you’re 70-1/2 or older, you and your spouse can each give up to $100,000 from your respective IRAs with no tax penalties and without adding a single penny to your taxable income. And you get an income deduction for your charitable gift whether or not you itemize your taxes. It’s a great way to make a significant contribution and take advantage of tax-saving strategies.
2. Appreciated stocks or property. Not only will this type of gift generate a tax deduction, but you can also save significantly on capital gains taxes, too!
Through a partnership with the National Christian Foundation, we can also receive complex assets, such as privately held stock, that can provide powerful tax-saving strategies.
3. Cash gift. Any generous donation you give — when dated and postmarked or given online by midnight December 31 — may apply toward this year’s taxes.