Charitable Tax Deductions Extended for 2021

In response to the continuing the global health crisis, a new federal stimulus bill was signed into law on Dec. 27, 2020. The economic package for pandemic relief extends charitable tax deductions from the previous legislation known as the CARES Act. These extensions include:

Non-itemizers eligible for $300 tax deduction:

The previous stimulus legislation allowed deductions of up to $300 in charitable gifts in 2020 for people who don’t itemize their taxes. The new measure extends this benefit through 2021 and expands the available deduction from $300 per return to $300 per single filer or $600 for those married and filing jointly. The adjustment does not apply to gifts made to a Donor Advised Fund.

Cap on deductions lifted:

Individuals who itemize may continue to deduct annual contributions up to 100% of their adjusted gross income for cash gifts made to nonprofits. This adjustment may be attractive to donors who wish to make a large cash donation. Gifts made to a Donor Advised Fund do not qualify for the increased deduction.

Corporate giving limit stays at 25%:

For corporate charitable giving, the annual limit will stay at 25% of taxable income in 2021 instead of reverting to 10 percent.

If you are interested in giving to Johns Hopkins during this unprecedented time, please consult your financial advisor. Contact the Office of Gift Planning if you have additional questions or if we can help you with gift-planning opportunities.

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