CHARITABLE GIVING BENEFITS EXTENDED FOR 2021

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) expanded the deductibility of charitable contributions to incentivize charitable giving in 2020 and in 2021. Here are some of the highlights:

If you itemize your deductions:
Cash contributions made in 2021 are deductible up to 100 percent of your Adjusted Gross Income (formerly 60 percent prior to the CARES Act). The contributions must be made to qualifying public charities (like Santa Barbara Wildlife Care Network).

If you don’t itemize your deductions:
Normally, people who take the standard deduction cannot claim a deduction for charitable contributions. The CARES Act permits a limited deduction on 2021 federal income tax returns for cash contributions made to certain qualifying charitable organizations.

· The $300 above-the-line charitable deduction has been extended for single filers

· Married couples filing jointly can deduct up to $600.

Interested in corporate giving?
In 2021, C corporations can deduct up to 25 percent of taxable income (previously 10 percent) for cash contributions to charities.

Please note that the above applies to federal taxes only; state law may vary. This information is not intended as legal or tax advice. For more information about how the extension of these CARES Act provisions may impact your specific financial situation, please consult with your tax, legal, or financial advisor(s).

For more information, visit the IRS website.