2020 Tax Benefits of the CARES Act

The OC Advancement Office would like to invite our partners to lean on our team's expertise for opportunities related to the CARES Act and your tax savings opportunities. The CARES Act of 2020 provides flexibility for retirement savers, incentives for charitable giving, as well as various tax deduction opportunities. Various tax incentives, deductions or other benefits may continue to support your charitable goals in 2020! Here are a few key provisions for your reference:

Required Minimum Distributions (RMD)
The new law suspends the mandated IRA payout known as RMD for the 2020 tax year. This may be a welcome relief as many retirement accounts have been affected by the recent market downturn. However, there are no restrictions if you want or need to receive distributions from your retirement accounts/IRAs.

Qualified Charitable Distribution (QCD)
The rules remain in place for this, which is commonly referred to as a Charitable Rollover (ie, those 70 1/2 years and above, with a transfer given directly from your administrator to OC and a maximum gift of $100,000). This type of transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.

Itemizers
For our Eagle Family who do itemize their deductions, the new law allows for cash contributions to OC to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.

Non-Itemizers
The CARES Act has a new charitable incentive. For those who will utilize the standard deduction: if you contribute to a qualified charitable organization you will be awarded a $300 "above the line" deduction, on your 2020 tax return.

Learn more about the CARES Act of 2020 and Planned Giving. Advancement officers are happy to meet with you and your professional advisors to make the most of your charitable goals while making a lasting impact for Oklahoma Christian University, students, and our community. We look forward to exploring opportunities available to you this year.

Remember, CARES Act tax provisions are only in place for 2020. Plan ahead and contact our team today.

Thank you for being a part of the OC family!