DONATION TAX DEDUCTION EXTENDED FOR 2021
Good news for charities and donors for the 2021 tax year…the CARES Act has been extended!
Fourth & Hope relies on your donations, and thanks to an extension of the CARES act, you can benefit even more from donating.
Elements of the Coronavirus Aid, Relief, and Economic Security (CARES) Act have been extended for 2021. Individuals who donate to a charity will receive up to a $300 universal charitable deduction for the 2021 tax year. The deduction amount varies upon donation value and is offered to those who use the standard deduction.
The extension also allows for an “above-the-line” deduction for those married filing jointly. Those who file jointly, and not itemizing, are allowed to take an above-the-line deduction of up to $600 in cash donations to charities. What does this mean? A $600 cash donation, can save the donor up to $192 in federal income tax and help so many at Fourth & Hope.
In the future, there is potential the CARES act and its tax incentives will no longer benefit all of us. It’s an important year to take advantage of this deduction. “With people in need and the future so uncertain, the best time to make a difference through charitable giving is now.”
This post is not tax advice, does not recommend people give to any particular charity, and does not support or oppose the current or proposed legislation.