Lower Taxable Income for Both Standard and Itemized Deductions
If you claim the standard deduction on your tax return, you can still deduct up to $600 in donations (for those filing jointly, or $300 for those filing individually) from your income on your federal income tax return, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. Click this IRS link for more info. Click belowto donate $600 for a masjid entrance walkway and deduct the entire amount on your annual tax return.
If you itemize deductions on your tax return, you can deduct up to 100% of your adjusted gross income (AGI) for charitable donations, under the Consolidated Appropriations Act in 2021. Previously, the deductible amount was smaller. This can lower your tax burden to nothing. Click this IRS link for more info.
Tax Avoidance on Capital Gains of Appreciated Stock
By donating appreciated stocks (or other securities such as mutual funds) directly to Masjid Uthman, you will avoid tax on capital gains from the appreciated value of those stocks while still being able to deduct 100% of the value of the contribution. You will reduce your tax exposure from these capital gains, even if you repurchase these stocks after your donation. To donate stock or securities, please call us at (312) 884-9441 to arrange for a transfer of your securities to Masjid Uthman’s brokerage account. Or email us at donate@masjiduthman.org.
Benefits Donating Through Your IRA
If you have an IRA and are at age 70 1/2 or above, you can make a Qualified Charitable Distribution (QCD) from your IRA without tax impact, in place of a simple cash donation. At age 72, the QCD can be used to satisfy your required minimum distribution (RMD), which is up to $100,000 per individual. See this article for more detail.
Matching Donations Through Your Employer
Many corporate employers offer their employees the benefit of matching employee donations. Through this benefit, you may even be able to triple your donation! If you have already donated in 2021, or plan to donate in 2021, make sure to check whether your employer will match your donation. Masjid Uthman is already set up through many companies, such as Abbott, Microsoft, Shell, and Trans Union. Click here to see if your employer offers a matching gift program and for a link to the corporate match application portals.