The Best Time to Make a Difference through Charitable Contributions is Right Now

2021 charitable contribution deduction
   

There is no better time than now to support the causes that are important to you. Many elements of the 2020 CARES Act have been extended into 2021, including the provisions surrounding tax deductions for charitable contributions. These opportunities won’t last, so we encourage you to take advantage of them today.

What Are the Charitable Contribution Limits for 2021?

Among the many tax incentives brought about by the pandemic is one allowing individuals and corporations to give more to charity at a lower cost.

The limitation for cash gifts has been raised to 100% of adjusted gross income (previously set at 60%) for those who choose to itemize their deductions. This allows taxpayers who itemize their deductions to give more before reaching their AGI limitation. And if a donor decides to give beyond their 100% AGI limitation, that amount may be carried over and used in the next five years. 

Corporations can also take advantage of this tax incentive by gifting up to 25% of their taxable income, which is an increase from the former 10%.

Those who do not itemize their deductions are allowed up to $300 of their charitable contributions to qualify as an above-the-line deduction. And married couples who file joint tax returns can claim twice the deduction.

These Opportunities Might Not Be Expanded past 2021 — Act Now!

2021 is an important year for charities, as the CARES Act provisions could potentially be rolled back, offering fewer incentives to donate. That’s why we encourage you to act now, especially with so many suffering from the consequences of the COVID-19 pandemic. There is truly no better time to give back to the charities and organizations that have helped to hold our communities together through it all.

If you have any questions regarding the tax deductions, our tax experts are here for you, always working hard to make the complex simple.

Reach out to us today! 

July 27, 2021