Year End Deadline for CARES Act Tax Advantage

As we approach the end of the calendar year, I wanted to remind you of the following tax provisions provided by the CARES Act that may impact your charitable giving for 2020. You can explore ways of giving at

  • Are you itemizing your deductions this year? Under the CARES Act, itemizers may deduct up to 100% of their adjusted gross income (AGI) for cash contributions made to Psi Upsilon in 2020. This is up from the standard 60% limit in prior years.
  • Do you plan on taking the standard deduction? The CARES Act allows for an additional, “above the line” deduction for cash contributions made to Psi Upsilon in 2020.  This deduction is limited to $300 for an individual of $600 for couples. Normally, no additional deduction is permitted when taking the standard deduction.
  • Are you considering a corporate gift? The AGI limit for cash contributions was also increased for corporate donors, allowing corporations to deduct up to 25% of their taxable income. This is an increase from the 10% limit in prior years.
  • The CARES Act has suspended required minimum distributions from retirement accounts for 2020.  However, individuals may still make a quailed charitable distribution of up to $100,000 from their IRAs, without the distribution being added to taxable income.

Should your donations in 2020 exceed your AGI deduction limits, you may still carry forward excess deductions for up to five subsequent tax years.

As always, I encourage you to consult with your tax and legal advisors when considering how these provisions may impact your charitable giving this year.

Thank you for your support and for being such an important part of the Psi Upsilon community.  On behalf of all of us, we send warmest wishes for a safe and happy holiday season.

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