CARES Act Tax Incentives Extended - With a Little Extra!

A number of key provisions of the CARES (Coronavirus Aid, Relief and Economic Security) Act were extended into 2021and in one case, increased. Here's how it impacts your charitable giving:

An expansion of the universal charitable deductions for cash gifts: The universal charitable has not only been extended but 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 funded).
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% of AGI for 2020 and 2021. Any excess contributions available can be carried over for the next five years. For corporations, the law raised the annual limited from 10% to 25% of taxable income.