CARES ACT: Tax incentives for charitable giving in 2021
The new charitable income tax deduction
for cash gifts to qualifying charities
is $300 for single filers and $600
for married couples filing jointly.
Two key provisions of the CARES Act have been extended into the new year (and, in one case, increased), offering tax incentives for charitable giving in 2021:
- The universal charitable deduction been extended and increased. The new charitable income tax deduction for cash gifts to qualifying charities is $300 for single filers and $600 for married couples filing jointly, regardless of whether you itemize deductions or take the standard deduction.
- Contributions to public charities are generally limited to a percentage of a taxpayer’s adjusted gross income (AGI). The CARES Act lifted the cap on annual contributions for those who itemize, increasing it from 60% to 100% of AGI for both 2020 and 2021. Any excess contributions available can be carried over to the next five years. For corporations, the law raised the annual limit from 10% to 25% of taxable income.
Please be in touch with a member of our team to discuss giving options in 2021 by calling 602-747-4483 or emailing firstname.lastname@example.org.