April is normally tax season here in America, but as we are all experiencing, the Coronavirus Pandemic is affecting all aspects of life, including charitable giving and how we report those charitable gifts on tax returns.  Here are a few clarifying questions and answers to support you as you navigate filing your 2019 taxes and reporting your 2019 charitable gifts in the rapidly changing landscape of 2020:

Q: What is the deadline to file my 2019 tax return?

A: Because of the impact of Coronavirus on the U.S. economy, the IRS has extended the deadline for individuals to file and pay federal taxes from April 15 to July 15, 2020, giving you an extra 90 days to prepare your taxes.  But be aware: State and municipal tax deadlines have not necessarily been extended; you should check with your state and city’s revenue department to find out if the date to file state and city tax returns has been extended, or if you will still owe those taxes on April 15.

Q: Is my 2019 donation to Who Is Carter tax-deductible?

A: The Who Is Carter Foundation is a 501(c)(3) nonprofit organization, which means that your donations to the Foundation qualify as tax-deductible.  If your donation was not exchanged for goods or services, it is 100% fully tax-deductible.  

Q: Is my 2019 Gala auction purchase fully tax-deductible?

A: For federal income tax purposes, you may be able to deduct the portion of your auction purchase price that exceeds the item's fair market value (FMV), if you paid the excess with the intent to make a charitable contribution. For example, if you purchased an auction item whose fair market value is $1,000 and paid $3,000 for the item, you may deduct up to $2,000 of your purchase.  

Q: Is my 2019 non-cash gift fully tax deductible?

A: If you donated property (i.e. a vehicle, land, or anything that is not money), you may generally deduct the fair market value of the property.  If the property has appreciated in value, however, some adjustments may have to be made.

The rules relating to how to determine fair market value are discussed in IRS Publication 561, Determining the Value of Donated Property.  By law, the Who Is Carter Foundation cannot tell you what your non-cash donation is worth.  To assess the fair market value of your donation, consult a local tax advisor who should be familiar with market values in your region, and review IRS guidelines.

Q:  I made a contribution in 2019, but I do not have a receipt from Who Is Carter as a record of my contribution.  How can I obtain a receipt?

A:  Just send an email to Allison Murray at allison@whoiscarter.org that includes details on the date and amount or type of donation you made in 2019. 

Q: Will itemizing my charitable contributions lower my 2019 tax bill?

A: It depends on whether the total of all of your itemized deductions exceeds your 2019 standard deduction.  For 2019, the standard deductions are:

• Single taxpayers, or married, filing separately: $12,200

• Heads of households (unmarried people who support others): $18,350

• Married, filing jointly: $24,400

We recommend that you consult with your tax advisor to determine which approach is to your advantage--itemizing or taking the standard deduction.

Q: Can my business deduct our 2019 charitable contributions?

A: If you are a C-Corp, then yes, you can deduct charitable contributions in most cases.  If you are an S-Corp, LLC, or self-employed, then no, you cannot deduct your charitable contributions.  However, S-Corp, LLC, and self-employed business owners still have the option to itemize these contributions on your personal tax return.

Q: Does the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) impact my charitable giving for 2020?

A: It does: The act includes a new above-the-line deduction (universal or non-itemized deduction that applies to all taxpayers) for total charitable contributions of up to $300 in 2020. The CARES Act also raises the existing cap on annual contributions for those who itemize—from 60 percent of adjusted gross income to 100 percent. For corporations, the CARES Act raises the annual limit from 10 percent to 25 percent. Again, these changes apply to charitable contributions and tax reporting for 2020, not for 2019. (This article from the National Council of Nonprofits explains the impact of the CARES Act on the nonprofit sector in detail.)

To be clear, the Who Is Carter Foundation cannot provide tax advice, but we do want to do our part to support our donors, especially during a time when uncertainty impacts so many realms of life, including your finances.  For more information on charitable giving and tax implications, please consult with your tax advisor.

We are so grateful for your donations to the Who Is Carter Foundation.  Because we are a nonprofit organization, our ability to serve families depends on your charitable contributions.  Your support provides resources to parents of children with neurological conditions through TheBrainPossible.com and--launching soon--The Brain Possible Podcast.  

Thank you for your part in providing hope and possibility to so many families!