With the passage of the SECURE Act and the CARES Act earlier this year, the federal government incentivized charitable giving to organizations like Habitat for Humanity of Forsyth County. The following changes may be important for you to consider as you think about your charitable giving this time of year:
- Under the CARES Act, taxpayers who do not itemize deductions can claim up to $300 in deductions for charitable contributions.
- For individuals reaching age 70½ in 2020 or later, the SECURE Act changes the age, from 70½ to 72, at which individuals are required to take distributions from their tax-deferred retirement savings accounts. However, with some exceptions, the CARES Act temporarily suspends required minimum distributions (RMDs) from retirement accounts for the 2020 tax year, regardless of the account holder’s age. Donors who continue to receive RMDs in 2020 may find that, as in prior years, there can be efficient ways to support our mission by directing all or a portion of their RMDs to Habitat Forsyth through a qualified charitable distribution from an IRA.
- Typically, individuals can take a charitable deduction of up to 60% of their adjusted gross income (AGI) for cash gifts to charities. In 2020 only, the CARES Act allows individuals to deduct cash gifts up to 100% of their 2020 AGI.
We encourage you to contact your tax adviser to determine if the changes noted above would be advantageous for you. If you have any questions or would like more information about the many ways you can support Habitat for Humanity of Forsyth County’s mission, please contact us at habitat@habitatforsyth.org or call (336) 306-8418.
