CARES Act Tax Incentives Extended With a Small Boost
A few of the key provisions of the 2020 CARES (Coronavirus Aid, Relief and Economic Security) Act were extended — and, in one case, increased — into the new year.
Tax Incentives When You Give to Charity
- An expansion of the universal charitable deduction for cash gifts
The universal charitable deduction has not only been extended, but it’s also been given a well-deserved upgrade. The new deduction is $300 for single filers and $600 for married couples filing jointly. This is available to taxpayers who take the standard deduction.This tax incentive is available for cash gifts to qualified charities, but not to supporting organizations or donor-advised funds.
- An extension of the cap on deductions for cash contributions
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 percent of AGI for 2020 and now for 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 percent of taxable income.
We Can Help!
If you would like more information about the renewed and expanded tax incentives for 2021 or how to make a gift to support a MultiCare program or foundation, contact our gift planning team at firstname.lastname@example.org or 253-403-3093.
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