This year has been both interesting and difficult for all of us. Everyday it seems we need to address another issue in our lives or the lives of our friends/neighbors both near and far away.
We all have concerns. What will happen to our children? Will they be prepared for the future when only attending formal classes on a part-time basis?
What about our investments? Will our savings be enough to carry us through these turbulent times?
How will our family, friends and neighbors fare during COVID-19 issues, wildfires and hurricanes? Everyone needs help RIGHT NOW.
Recent changes maybe holding you back from helping others, however, there are some changes in the law that could help both you and others. Act on this information BEFORE year end to benefit all.
Taxpayers that have claimed the standard deduction in recent years can get an above the line deduction of up to $300.00 if you make a CASH donation to a qualified charity. Only give to a qualified charity; avoid personal appeals from on-line scammers.
Since retirees do not have to make a Required Minimum Distribution from their IRA this year consider giving directly from your account to a charity. The amount given will be deducted from your IRA account without you having to pay taxes on the withdrawal. Contact your financial advisor before year end if this idea is of interest.
Giving stock that has increased in value is another way to help our many non-profit organizations. Stock that you have held over one year can be donated without paying capital gains tax this year.
Even though the standard deduction for couples is $24,800 (higher if you are over 65) and you find that your deductions for medical care, taxes, etc. will total about the standard deduction amount, you can make a large gift to charity over the $24,800 standard deduction and take it all as a tax deduction in one year. Doubling up on charity donations in a year that it is desperately needed and donate less next year. This action is amassing your gift to charity and helping yourself also.
The monetary amount you give to charity in 2020 can equal up to 100% of your Adjusted Gross Income if you are in a position to donate a substantial amount. This is a one time opportunity. In year’s past donations of this magnitude could only be given up to 60% of Adjusted Gross Income.
Please keep this information in mind as we approach the “giving season” and year end. You can make a disastrous year for your neighbors into a grateful year.