Great news! Expanded Charitable Deduction Limits: As part of the 2020 CARES Act, several provisions have been extended and expanded that may impact your 2021 charitable tax deductions as described below:
- Extension: $300 deduction for those who claim the standard deduction.
Individuals who plan to take the standard deduction for their 2021 tax returns may claim an above-the-line deduction of up to $300 for cash donations to qualifying public charities
- New Expansion: $600 deduction for married couples.
For 2021, this above-the-line deduction is increased to $600 for cash donations for married couples filing jointly who do not itemize tax deductions.
- Extension: Charitable giving deduction limit increased to 100 percent of Adjusted Gross Income (AGI) on cash donations for those who itemize.
Donors may continue to receive a federal income tax deduction for charitable contributions of up to 100 percent of their AGI for certain cash donations made during calendar year 2021. Prior to 2020, this number was 60 percent.
- New: Importantly, the CARES Act suspension of the Required Minimum Distributions (RMD) from most retirement plans for 2020 has not been extended into 2021. You can still make a gift from your IRA or name EOS International as the beneficiary.
For more information, please contact Lisa Cook, Director of Development at [email protected]
This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.