Our partner at FreeWill is helping you understand some big changes for the 2020 tax filing year that may be beneficial to you and your family during these difficult times.
The U.S. Congress has passed the CARES Act to provide economic assistance and there are some important changes that may make a difference for you this year:
- Checks for individuals: If you had an income of less than $75K last year, you will receive a check of $1,200. Individuals who earned between $75K and $100K will also receive a check on a sliding scale based on their incomes. If you have a bank account on file with the IRS, news outlets are reporting you can expect to receive a direct deposit in Mid-April. Otherwise, the IRS will begin mailing checks in early May.
- Additional Income Tax Charitable Deduction: You can deduct up to $300 above the standard deduction for individuals in charitable contributions. This is for everyone, even if you have no other itemizations.
- No “RMDs” from your IRA, but QCDS are still a smarter way to give: For individuals with IRA accounts, there are no Required Minimum Distributions (RMDs) this year. However, giving pre-tax funds out of your IRA will still lower your future tax burden compared to giving cash. If you are interested in this method of giving please contact your IRA custodian today or contact Director of Major Gifts and Planned Giving, Kathy Moore.
We hope you find this information useful as you make important decisions about how to best support RMHCA’s mission this year. If you have any further questions about the CARES Act or just want to reach out, please contact our Director of Major Gifts and Planned Giving Kathy Moore at [email protected].Â
