Smart Advice. Simply. Clearly.
CHARITABLE GIVING IN 2021: EXTENSION OF BENEFITS UNDER THE CARES ACT
Due to the pandemic, charity donations are needed more than ever. And, with charitable tax deductions, your 2021 generosity will be rewarded come tax season — thanks to an extension of benefits under the CARES Act.
The provision allows a married couple filing jointly to get double the deduction for 2021 — if they make $600 in cash gifts to charity. (Note, gifts to donor-advised funds and private foundations do not count.)
Non-itemizers get a charitable deduction too! (Most of us no longer receive tax benefits for charitable gifts because we take the standard deduction and don’t itemize deductions.)
For a married couple filing jointly who take the standard deduction in tax year 2021, if they give $600 to charity, they’d get the $600 tax break in addition to the standard deduction ($12,550 for individuals and $25,100 for joint filers).
So, those who give a gift will also receive one whether they itemize or take the standard deduction!