The CARES Act

To encourage continued annual support from gifts of any size, the CARES Act allows non-itemizers to reduce their taxable income by up to $300 for cash donations to public charities made in 2020. The $300 limit is the same for single filers and married couples who file jointly.

The CARES Act eliminates the limit on the federal charitable income tax deduction for certain kinds of gifts made in 2020. This year only, taxpayers who donate cash to a public charity such as JF&CS may take a federal charitable income tax deduction equal to as much as 100% of their adjusted gross income (AGI).

2020 is a good year to give away money from your IRA or another retirement account: 

• Individuals over 70 ½ can give directly to JF&CS up to $100,000 and avoid all tax consequences.
• Individuals over 59 ½ can withdraw unlimited amounts from their retirement accounts, which creates the opportunity to donate the distribution to JF&CS and take an offsetting deduction, thereby avoiding any federal tax on the distribution. 
• As a further way to help JF&CS, please consider adding us as a beneficiary of your retirement account.