As a result of the recent federal economic stimulus legislation, you can give to our clubs and enjoy tax benefits.
Several economic incentives have been provided by Congress to address the widespread impact of the COVID-19 pandemic, including additional tax incentives to support increased charitable giving. Temporary tax rules for charitable giving were enacted by Congress last year as a part of the Consolidated Appropriations Act of 2021.
Summary of Stimulus Changes for Charitable Giving:
(1) You may deduct gifts of cash to most public charities to offset as much as 100% of your income. For the 2021 tax year, you may deduct cash contributions to Boys & Girls Clubs of Stoneham & Wakefield to offset up to 100% of your adjusted gross income (“AGI”). Previously, the tax charitable deduction for cash gifts was limited to 60% of your income. (Check with your financial advisor to determine if the 100% deduction makes sense for your specific circumstances).
(2) If you don’t itemize, you may reduce your taxable income by $300 for your charitable contributions in 2021. If you do not itemize your deductions, you can still reduce your taxable income by up to $300 (or $600 for married couples filing jointly) for cash contributions to public charities using an “above the line” adjustment to reduce your taxable income.( Note that these incentives are temporary and are scheduled to expire at the end of 2021).
(3) Qualified charitable distributions continue to be an excellent way to make contributions if you are 70½ or older. A qualified charitable distribution allows you to make a tax-free gift of up to $100,000 to Boys & Girls Clubs from your IRA if you are 70½ or older. A qualified charitable distribution can help you make tax-advantageous contributions, particularly if you do not itemize your deductions.*
Always remember, there are also additional tax benefits of a bequest to our Clubs.
For more information on how the latest stimulus legislation may impact your charitable giving to the Boys & Girls Clubs, please contact Anthony Guardia at [email protected]
Check with your financial advisor to determine if these options make sense for your specific circumstances.