Congress passed the COVID-19 relief bill that extends tax provisions from the Cares Act into 2021.
Charitable Deductions for 2020 & 2021
Non-itemizing taxpayers who made cash donations in 2020, and now in 2021, can receive an additional deduction of up to $300 or $600 for a married couple filing a joint return.
The Consolidated Appropriations Act extends the Adjusted Gross Income (AGI) for cash donations to Quest or any public charities to 100% for individuals.
Donors should consult with their tax advisor or software provider when completing their tax return.
IRA Minimum Distributions
The IRA waiver from 2020 for the Required Minimum Distribution (RMD) no longer applies. The IRA required minimum distribution will begin again for individuals 72 or older. If you are 70 ½ and older, you can make a Qualified Charitable Distribution (QCD) of up to $100,000 from your IRA to Quest or public charities, which qualifies toward your RMD.
Making a Qualified Charitable Distribution (QCD) may make sense if you are required to take a RMD from your IRA, but don’t need some of the funds and would face a tax liability if taken as income. You may want to consider reducing your IRA balance to lower your minimum distributions. If you are considering making a larger gift to Quest than you could with cash or other assets, giving an asset such as Qualified Charitable Distribution is one way to support Quest’s endowment. Another way is to become a founding member to the Katie Porta Legacy Society.
For more information, please contact Robert Haight in Orlando at robert.haight@questinc.org / (407) 218.4327. If you’re in Tampa, please contact Robert Krouse at robert.krouse@questinc.org / (813) 423.7701.
It is important to work directly with your financial advisor or investment consultant when considering a Qualified Charitable Distribution in order to benefit from the tax advantages.
Robert (Bob) Haight is Quest, Inc.’s Vice President of Philanthropy. He has served in non-profit executive leadership roles in Illinois, Michigan, Ohio and Florida. He has major gift experience aligning donors to their passion and non-profit initiatives. During his career he has provided leadership to campaigns raising over $250 million for health and human service programs.