Thank you for your gift to advance the work of worship renewal through IWS.
To give to a named Scholarship Fund, include the name of the fund in the Donor Comment box below. To give toward an Endowment Fund or other fund not listed on this form, please contact the IWS Office. Let us know if the gift is a memorial or if there are any other special circumstances in the form’s Comment box. All gifts are tax-deductible. Donations are in U.S. dollars
⊕ For U.S. Donors: Click for Information regarding the Coronavirus Aid, Relief and Economic Security (CARES) Act and its 2021 Extension
U.S. Donors: The Coronavirus Aid, Relief and Economic Security (CARES) Act will let any taxpayer deduct up to $300 in charitable donations from their taxable income, even if you do not itemize your charitable donations. NOTE: This positive scenario applies to donors in any tax bracket for the entirety of tax year 2020. The CARES Act temporarily creates a “universal charitable deduction,” also known as an “above-the-line” deduction for donations; that is, in addition to the standard deduction. Gifts must be made in calendar year 2020 and must be made directly to IWS, not through a donor advised fund or a private foundation.
The year 2021 offers a unique financial opportunity for people to support IWS, because of the extension of the 2020 CARES Act provisions related to tax deductions for charitable contributions. But that opportunity may be short-lived.
As indicated above, the CARES Act of 2020 offered tax incentives to high-income individuals and those with more modest incomes to support charitable causes. Elements of the act have been extended to 2021, and they include measures that allow for charitable deductions of up to 100% of adjusted gross income (with a few exceptions) for cash gifts made by individuals who elect to itemize deductions on their tax return. The provisions also allow corporations to deduct charitable contributions up to 25% of taxable income.
For individuals who do not itemize their tax deductions (roughly 85% of us), the legislation for 2021 extends the $300 universal “above the line” charitable deduction implemented in the Cares Act. It also allows twice the deduction ($600) for couples who file their tax return jointly. As a result, a couple in the 32% marginal tax bracket can save $192 in federal income tax on a $600 donation, for example. Considering that corporations get a larger deduction too, and that many people work for companies with a corporate match, a gift with an out-of-pocket cost of approximately $400 after the tax deduction could have a $1,200 impact if the companies they work for take advantage of the tax break and matches their donations. As in 2020, this deduction applies only to qualified cash contributions and does not apply to cash contributions made to private foundations, donor advised funds or supporting organizations, or to split interest trusts like charitable remainder and lead trusts. It also does not apply to carry-over contributions. And, these opportunities might not be extended past 2021.
The temporary suspension of the 60 percent charitable contribution deduction limitation has been extended into 2021 for qualified cash contributions. In 2021, individual taxpayers who itemize tax deductions and who contribute cash to a public charity, or a limited number of private foundations, may deduct up to 100 percent of their adjusted gross income after taking into account other contributions subject to charitable contribution limitations. Individual taxpayers can continue to carry forward any excess charitable contributions for five years, but the enhanced 100 percent deduction limitation expires after 2021.
In 2021, corporations may continue to deduct charitable gifts up to 25 percent of the corporation’s taxable income (increased from 10 percent).
The CARES Act suspension of the required minimum distribution from most retirement plans for 2020 does not appear to have been extended into 2021.
Please note that the above applies to federal taxes only; state law may vary. For more information about how the extension of these CARES Act provisions may impact your specific financial situation, please consult with your tax, legal, or financial advisor(s).
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