With just a few weeks left in 2020, now is the time to make your end-of-year donations. The CARES Act, introduced to help Americans navigate COVID-19, offers supporters like you a way of reducing your taxes.
- Individual Contributor, Non-Itemized Deductions
A deduction up to $300 in charitable contributions from your adjusted gross income (AGI) is permissible for those who take the standard deduction. (e.g. in 2020 if you donate at least $300, your deductions = the standard deduction + $300) NOTE: Gifts of appreciated securities do not qualify.
- Individual Contributor, Itemized Deductions
A deduction up to 100% of your adjusted gross income (AGI) in charitable contributions is permissible for donations made in cash to a qualified charitable organization such as BPS Foundation. This is an increase from the general limit on deductions to no more than 60% of the AGI.
- Retirement Plan Distributor
All required minimum distributions (RMDs) from retirement accounts are suspended for 2020. Donors who are 70 ½ years or older are permitted to contribute up to $100,000 directly to a qualified charitable organization without paying tax on the distribution.
- Business/Corporate Contributor
A deduction up to 25% of your taxable income in charitable contributions is permissible for donations made in cash to a qualified charitable organization. This is an increase from the general limit on deductions to no more than 10% of the taxable income.
As a steadfast believer in the importance of supporting public education, you have been an integral partner in providing opportunities for academic excellence, innovation and advancement. Please consider making a donation today and take advantage of the unique tax opportunities provided through the CARES Act.
Consult your tax accountant for more details on these provisions. More information can also be found here.