Apr 7, 2020
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, also known as the Stimulus Act, that was signed into law in March includes a number of provisions that make philanthropic giving even more attractive:
1. Created the “Universal Charitable Deduction”
This provision allows non-itemizers to take up to a $300 above-the-line charitable income tax deduction for cash donations made in 2020. Taxpayers giving $300 in 2020 will also get a $300 tax break in addition to their standard deduction.
2. Includes a provision that would help the most generous individual corporate donors by eliminating the percent of adjusted gross income limits for charitable deductions.
For individuals, the 50% of adjusted gross income limitation is suspended for 2020. For corporations, the 10% limitation is increased to 25% of taxable income.
3. The required minimum distribution (RMD) rules for Individual Retirement Accounts and 401(k)s are waived for 2020.
That means that instead of taking money out this year, retirees can keep their investments growing and reduce their taxable income for 2020.
The Charitable Rollover is still in place, but it will not count against RMD since there is none for 2020.
If you have any questions about the Federal Coronavirus Stimulus package, deferred or planned gift opportunities, please feel free to contact:
Marianne Blackwell, JD
Senior Director, Office of Gift Planning
Or visit the CU Gift Planning website
IRS Circular 230 Notice: The University of Colorado System does not provide individual legal, tax, or financial advice. Consequently we urge you to seek the advice of your own legal, tax, or financial professionals in connection with gift and planning matters. This communication (including any attachments) is not intended or written to be used and cannot be used for the purpose of avoiding tax-related penalties.