As we approach the end of 2021, here are some ideas to help you support Recreation and give you tax savings too.
CARES Act 2.0: The CARES Act, originally signed into law in March, 2020, has been extended through December 31, 2021. Of note:
- Non-itemizers can take an above-the-line adjusted gross income reduction for cash gifts to non-profits like UC San Diego. Single filers can take up to $300 and, for the first time in 2021, married couples filing jointly can take up to $600.
- Taxpayers who itemize can contribute cash to a public non-profit like UC San Diego and deduct up to 100 percent of their adjusted gross income, factoring in other charitable contribution limitations. You can still carry forward unused deductible amounts for five years, but…the 100 percent deduction expires after 2021.
Stocks and Securities: A gift of appreciated securities owned longer than one year can be deducted at fair market value and you will avoid paying capital gains tax on the appreciation.
Qualified Charitable Distributions: Whether or not you itemize, if you are at least 70 1⁄2, you can make a QCD from your IRA to support Chancellor’s Associates. A QCD is not included in your reportable taxable income. In addition, if you are at least 72, your 2022 required minimum distribution will be calculated based in part on the value of your IRA at the end of 2021, so a QCD in 2021 can help you manage your financial situation in 2022, including your annual Medicare contributions and your overall tax picture.
To learn how these giving options might affect your specific financial situation, please consult with your tax, legal or financial advisor(s). To learn more about these charitable giving ideas or for answers to any planned gift question, please contact Kim Wenrick in the Office of Gift Planning at email@example.com or (858) 761-2099.