Posted on: April 27, 2020
And let the peace of Christ rule in your hearts, to which indeed you were called in the one body. And be thankful. – Colossians 3:15
We are indeed incredibly thankful for this Body of Christ at St. John’s and your continued support and care of each other and our wider community. While the current pandemic is creating tough economic times for some of our members, many are still able and eager to give. In the face of this tremendous generosity we want to make sure you know about tax benefits included in the CARES Act.
New charitable deduction for taxpayers who do not itemize. Beginning in 2020, individuals can deduct $300 in charitable contributions from their gross income even if they do not itemize their deductions. Donations must be made by cash, check, or credit card to a charity.
No cap on charitable deductions for taxpayers who do itemize. Donors who itemize their deductions can usually deduct cash contributions up to 60% of their adjusted gross income. For 2020, that cap is lifted, and donors contributing to charity may deduct up to 100% of their income, a significant tax savings for anyone able to contribute larger amounts.
No required minimum distributions, but qualified charitable distributions still possible. The CARES Act eliminates required minimum distributions (RMDs) from many retirement plans in 2020. Some donors have been using their RMDs for tax-advantaged charitable gifts by making a qualified charitable distribution (QCD) directly to charity. Under the CARES Act it is still possible for donors who are 70½ or over to contribute up to $100,000 directly to a charity without paying tax on the distribution. This remains a beneficial way for donors to make gifts.
The CARES Act is a complex new law. This email is intended only as a summary of provisions that may be advantageous to those seeking opportunities to give at this time of need. Please consult with your own professional advisors before making a significant gift. For questions about giving at St. John’s speak with myself or our treasurer, Rick Rinkoff.
God has fashioned us for life together, equipped us with gifts to share that we might thrive together, and has promised to be with us and for us, now and always.
Yours in Christ,