- You can take a charitable deduction against up to 100% of your 2020 adjusted gross income for federal tax purposes.
- You can advance your 2021 giving before December 31 due to the CARES Act, allowing for a cash charitable contribution to erase up to 100% of your adjusted gross income. This is the first time since 2005 the IRS has allowed this.
- You can claim an additional “above-the-line” deduction for charitable gifts made in cash of up to $300. If you are not itemizing on your 2020 taxes, you can claim this new deduction.
Amplify your Gift
You have the opportunity this year to give more than normal and to experience significant tax benefits for you and your family.
More traditional year-end options for giving
If you’re 70-1/2 or older, you and your spouse can each give up to $100,000 from your respective IRAs with no tax penalties and without adding a single penny to your taxable income. And you get an income deduction for your charitable gift whether or not you itemize your taxes. It’s a great way to make a significant contribution and take advantage of tax saving strategies.
Not only will this type of gift generate a tax deduction, but you can also save significantly on capital gains taxes, too! Through a partnership with the InFaith Community Foundation, we can also receive complex assets, such as privately held stock, that can provide powerful tax saving strategies.
Our Journey Legacy Impact Fund for receiving non-cash assets and was set up as an “organizational fund” or Single-Charity Fund and qualifies for the same special adjusted gross income (AGI) deductions provided in the CARES Act. This means that all gifts qualify for up to 100% of AGI charitable income tax deduction in 2020. This allows you to give non-cash assets such as stocks, bonds, real estate, insurance, wills, living trusts, remainder annuities, and split-interest gifts to Journey. We can also assist you in setting up charitable trusts for your ongoing generosity to Journey if you are interested.
Any generous donation you give — when dated and postmarked or given online by midnight December 31 — may apply toward this year’s taxes.
Many companies and employers are providing an opportunity to receive matching donations or grants for funds donated directly to Journey Church on their behalf. This allows employees to give directly to Journey, and then their employer matches the giving or sometimes increases the donation amount to Journey. Please contact your employer’s human resources department to see if this is available for you.
The AGI limit for cash contributions was increased for corporate donors in 2020 to 25%. Business entities, which are generally limited to deducting charitable contributions of up to 10% of their taxable income are permitted by the CARES Act to deduct qualified contributions of up to 25% of their taxable income, when given to a church. If the aggregate amount of qualified contributions made by a business entity exceeds the 25% limit, it may deduct the amount of its qualified contributions exceeding the 25% limit over the next five years.
Are you itemizing deductions on your personal federal tax return?
The adjusted gross income (AGI) limit for cash contributions was increased for individual donors. For cash contributions made in 2020, you can now elect to deduct up to 100 percent of your AGI (increased from 60 percent). With this special deduction, givers are able to deduct up to 100% of their adjusted gross income (AGI) for cash gifts (including checks and credit card payments) made in 2020 to Journey Church.
Not itemizing your personal federal tax return?
The CARES Act allows for an additional, “above-the-line” deduction for charitable gifts made in cash of up to $300. This deduction is available regardless of filing status and contributions are listed as an adjustment to income on your taxes. If you are not itemizing on your 2020 taxes, you can claim this new deduction. If you do not itemize your deductions, you may add $300 to your standard deduction if given to a church. This is called an “above the line” deduction. Example a married filing jointly couple standard deduction is $24,800 for 2020 and they may add an additional $300 on top of that number (and claim $25,100…) should they donate $300 to Journey.