In response to the current situation, Congress has extended some of the COVID relief tax changes to 2021. The Coronavirus Stimulus 2.0 bill includes a one-year extension of the CARES Act\u2019s provision increasing charitable deduction limits to 100% of AGI for contributions by individuals to qualifying charities. You’ll want to work on your 2021 charitable giving budget early in the year to determine whether you can benefit from this incentive or whether you would be better off carrying forward charitable contribution deductions into future years.<\/p>\n\n\n\n
Even if you don\u2019t itemize, it’s still good to plan for at least $300 in cash contributions to qualifying charities (and now $600 for non-itemizing joint filers) this year. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, known as the Coronavirus Stimulus 2.0 bill, was passed by Congress on December 21, 2020, and signed into law on December 28. The legislation extends the CARES Act\u2019s temporary, above-the-line charitable deduction for contributions to qualifying public charities for tax year 2021. <\/p>\n\n\n\n
Heuser Hearing & Language Academy has created this page to offer resources to help you with your charitable planning and to offer ideas for you to consider if you are thinking about making a gift to help children with hearing loss in 2021.<\/p>\n\n\n\n
1. 2021 Giving Incentives<\/strong><\/p>\n\n\n\n The CARES Act passed in 2020 included several charitable tax provisions to encourage giving. Congress has extended these provisions for 2021 including:<\/p>\n\n\n\n A deduction for charitable donors who do not itemize when filing their tax returns. If you do not itemize but make a cash gift to charity, you will be allowed to take a special tax deduction, up to $300 ($600 for joint filers), to reduce your tax liability.<\/p>\n\n\n\n An increase in the deduction limit up to 100% of a donor’s annual income for cash gifts (previously the deduction was capped at 60% of annual income). If you make a gift you will be able to deduct more this year.<\/p>\n\n\n\n 2. Qualified Charitable Distributions<\/strong><\/p>\n\n\n\n Qualified charitable distributions are a great way to make contributions if you are 70\u00bd or older. A qualified charitable distribution (also known as a QCD or IRA charitable rollover) allows you to make a tax-free gift of up to $100,000 to Heuser Hearing & Language Academy from your IRA if you are 70\u00bd or older. A qualified charitable distribution is a great way to make tax advantageous contributions, especially if you don\u2019t itemize your deductions. Note that the CARES Act suspension of the required minimum distribution from most retirement plans for 2020 does not appear to have been extended into 2021.<\/p>\n\n\n\n 3. Donor Advised Funds<\/strong><\/p>\n\n\n\n If you have a Donor Advised Fund (DAF) and wish to help us this year, you can make a gift from your DAF to support our work without affecting your personal financial security.<\/p>\n\n\n\n