In March of 2020, Congress passed the CARES Act (Coronavirus Aid, Relief, and Economic Security) which include specific benefits that affect charitable giving for the tax year 2020. There are several ways the new CARES Act may influence your gift planning and may reduce your income taxes in the 2020 tax year:
- If you do not itemize your taxes you may reduce your taxable income by $300 for your Charitable contribution if you elect to take the standard deduction.
- Your cash gifts to Opera San José can be used to offset as much as 100% of your income. Check with your financial or other advisors to determine whether the 100% deduction makes sense for your specific circumstances.
- The required minimum distribution (RMD) from qualified retirement plans has been suspended for the tax year 2020 and can be delayed until 2021. The higher deduction limit of 100% AGI may create an incentive to continue the RMD in 2020. A qualified charitable distribution (“QCD” or “IRA charitable rollover”) allows you to make a tax-free gift of up to $100,000 to Opera San José from your IRA or other defined contribution retirement plan.
For more information on how the CARE Act may benefit your gift planning in 2020, please contact your financial advisor for more information.