Hi, I am trying to plan for tax decisions that I have to make by Dec.31st, 2020. I would like to donate 100% of my income to charity using a Donor Advised Fund (which I have been told is limited to 60%). Can I donate 60% via the DAF and the other 40% directly to other charities? Am I correct that the 100% giving limit is still in effect for 2021?
In case more info is needed: I have an unusually skewed income this year that I can divide between 2021 and 2022. I am trying to take most of it this year and offset it by giving it to charity. I don't want to give it all to charity and then find when I file that I owe tax on 40% of 130k. I am using a DAF so that I can take my time in choosing charities to give to. My income in 2022 will be very low and I will not be itemizing. Thank you so much for help!
Thank you for your reply. I had already read through these IRS pubs, but I am not a tax specialist so I was still unsure. I was hoping that someone maybe had some personal experience with my scenario of donating 100% of AGI using a Donor Advised Fund for a portion of it. Thank you again.
"The law now permits electing individuals to apply an increased limit ("Increased Individual Limit"), up to 100% of their AGI, for qualified contributions made during calendar-year 2021. Qualified contributions are contributions made in cash to qualifying charitable organizations."
" Keep in mind that an individual's other allowed charitable contribution deductions reduce the maximum amount allowed under this [ ("Increased Individual Limit")]. "
One strategy : avoid the DAF completely.
Disclaimer: I have no experience in this area.