President’s Message – May 2021

The U.S. Treasury Department and Internal Revenue Service have announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended to May 17, 2021.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” stated IRS Commissioner Chuck Rettig.

The Foundation would like to pass along to you, our valued donor, some notable tax updates we hope you will find helpful:

• Increased deduction for cash contributions – The 100% deduction for charitable gifts made using cash has been extended for 2021. Donors can take a charitable deduction of up to 100% of their adjusted gross income (AGI) this calendar year (the cash deduction limit will return to 60% of AGI in 2022). This increased deduction is not available for gifts to donor advised funds; and the deduction limit for appreciated securities remains at 30% of AGI.
• Charitable Deduction for Non-Itemizers – Even if you take the standard deduction and no longer itemize, you are entitled to take an above-the-line deduction of $300 (individual) or $600 (joint return) in 2020 and 2021 for gifts to charity.
• Renewed benefit for IRA Qualified Charitable Deduction (QCD) gifts – For individuals age 72 years and older, required minimum distributions (RMD) from IRA accounts are back in place for 2021. Donors who are 70½ or older can use an IRA to make gifts to charity of up to $100,000 each year that avoid income tax and also count against any RMD.

The Bridgeport Hospital Foundation hopes to be a valued resource for you as you consider your long-term planning.

For more information about our Susan Hubbell Legacy Society and planned giving, please click this link: https://foundation.bridgeporthospital.org/ways-to-give/planned-giving/

Contact us anytime at giftplanning@bpthosp.org or call 203-384-3522.