How can anyone that is not an accountant, or financial planner keep up on all that goes on with the tax code, let alone the Cares Act? John McKenna received this message from RAF Ambassador Rick Mercil and we thought it was worth sharing. No matter who your favorite charity is, you may want to take advantage of this opportunity. (see below)
I just finished my 1st read of the CARES Act related to the COVID 19 issue.
These times are certainly creating difficulty for some, but charitable organizations like the RAF can benefit from this new legislation. Some of our donor friends may not be aware of this opportunity to help the RAF this year and get a tax advantage.
Let me briefly explain how it works:
- There is a new $300 tax deduction “above-the-line” adjustment for non-itemizing tax payers (about 90% of taxpayers) who had lost the tax incentive to donate. It is $600 for married couples.
Those who do itemize can still itemize, and get benefit as well.
- Required Minimum Distributions are not going to be required to be taken from IRA’s and other qualified plans this year, (2020) yet you can still gift up to $100,000 from those plans to charities of your choice without it being considered income.
These new rules can benefit donors who would like to assist the RAF, and are in a position to do so. There is no assurance this will be carried forward past 2020, so if this might fit you and your situation this is the year.
The RAF appreciates Rick’s professional observations, and recommend you consult your tax preparer for ways the CARES Act can make donations easier for you, as well as applicability to your situation.
Submitted on April 4, 2020