What the CARES Act Means for Your Gift
Thank you, as always, for supporting ArtsWave. You may be aware that Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020. Included in this legislation were several provisions that expand charitable giving tax deductions this year:
You can now deduct your gift to ArtsWave, even if you take the standard deduction. The CARES Act allows for up to $300 per taxpayer ($600 for a married couple) in an above-the-line deduction for charitable gifts made in 2020 and claimed on taxes in 2021. This means that you can lower your income tax bill by giving to ArtsWave today, even if you take the standard deduction on your taxes. Please talk with your accountant to learn more.
If you itemize deductions, there are new charitable deduction limits. The CARES Act increases the existing cap on charitable cash contributions for those who itemize, raising it from 60% of adjusted gross income to 100% in 2020. Please talk with your accountant to learn more.
Were you planning to take a required minimum distribution (RMD) from your retirement account in 2020? The CARES Act waives all RMDs for individuals over the age of 70 ½ who own specified retirement accounts in 2020. However, for account owners who began taking their RMDs prior to 2020, you can still choose to send a qualified charitable distribution to ArtsWave and thereby decrease your tax burden. For more information, please talk with your retirement account administrator or accountant.