CARES ACT 2021

TWO IMPORTANT PROVISIONS FOR THIS YEAR

CARES ACT – Charitable Provisions Extended for 2021
 

• For those who do not itemize deductions – Donor can claim an above -the-line deduction of $300 for individuals and $600 for married couples filing jointly for gifts to qualified charitable organizations.

• For individual taxpayers who do itemize deductions – Donor who itemize their deductions can now give more cash to charity before reaching their adjusted gross income (AGI) limitation. Formerly set at 60%, the limitation for cash contributions has now been raised to 100% of an individual AGI for both 2020 and 2021. Any giving beyond this 100% limitation may be carried over and used in the next five years.

Gifts from an IRA, Qualified Charitable Distribution (QCD) are popular forms of end-of–year giving for those 70 1/2 or older. A donor can make a gift directly from their IRA to the parish which can result in a reduction in annual taxes owed.

Gift of appreciated stock allow donors to make an impact to the mission of the church and avoid capital gains on the appreciated shares that are donated to a “qualifying charity (which Epiphany is)”.