What you Need to Know to Maximize Charitable Tax Deductions This Year!
Happy New Year! I can’t begin to describe how elated I am that 2020 is behind us, and I remain optimistic that 2021 brings with it some kind of return to normalcy.
Whatever happens, we do know that a new year brings new tax rules. So what is it you need to know when it comes to charitable tax deductions this year?
On Dec. 27, 2020, President Trump signed into law the Consolidated Appropriations Act, 2021. The Act included several provisions, but for charitable giving, it meant an extension of the CARES Act deductions for charitable contributions…with a few modifications:
- Non-itemizers can continue to take advantage of an above-the-line deduction for charitable contributions. For 2021, however, the limit has increased from $300 to $600 for married couples filing jointly.
- Itemizers may continue to deduct 100% of their adjusted gross income for cash gifts to qualified nonprofits.
- For corporations, the adjusted gross income limit will remain at 25% of taxable income rather than reverting back to the 10% limitation.
Note: Donor advised funds and private foundations are excluded.
What this means for your clients wishing to take advantage of giving opportunities at OCCF:
Any field of interest fund, charitable organization endowment fund or scholarship fund is eligible under this extended provision. If there is not an existing fund that meets their giving criteria, we are happy to establish a new fund specifically designed to meet their needs. Give me a call at (405) 606-2914 or send me an email, I’d be happy to help!
Joe Carter, Vice President of Development