As 2020 comes to a close, we wanted to alert you of some ways of giving that are unique to this year. As part of a record economic relief package in reaction to the coronavirus pandemic, the following 2020 tax-smart moves were enacted:

Charitable-giving deduction: A new deduction of as much as $300 for donors choosing the standard deduction, instead of itemizing. The double bonus is this deduction will appear on tax returns above the line for calculating your Adjusted Gross Income (AGI).

Suspension of charitable-deduction limits: This temporary suspension could affect donors who itemize deductions and want to contribute a larger share of their income this year.

Required Minimum Distribution (RMD): The Cares Act waived RMDs during 2020 for IRAs and most other retirement plans.

IRA charitable transfers are not new, but something to remember: Once you are 70½ or older, you typically are eligible to transfer as much as $100,000 a year from an IRA directly to qualified charities and have this distribution considered non-taxable.

These topics are summarized here in an article from the Wall Street Journal. Your tax preparer should be consulted to provide you with more details and your eligibility. As always, thank you for your financial gifts and, above all, for your presence in our community.