You are here

Tax Benefits of the Cares Act

Tax Benefits of the Cares Act

CARES Act Tax Incentives Extended in 2021

A couple of key provisions of the CARES Act were extended in 2021 (and in one case, increased).

  1. An expansion of the universal charitable deduction for cash gifts

The universal charitable deduction has not only been extended but given a well-deserved upgrade.The new deduction is $300 for single filers and $600 for married couples filing jointly.This is available to taxpayers who take the standard deduction.This tax incentive is available for cash gifts to qualified charities (but not to supporting organizations or donor advised funds).

  1. An extension of the cap on deductions for cash contributions

Contributions to public charities are generally limited to a percentage of a taxpayer’s adjusted gross income (AGI). The CARES Act lifted the cap on annual contributions for those who itemize, increasing it from 60% to 100% of AGI for 2020 (and now for 2021). Any excess contributions available can be carried over to the next five years. For corporations, the law raised the annual limit from 10% to 25% of taxable income.

Your Charitable Goals

We are deeply grateful for your continued kindness and support during this difficult time. For more information about how the CARES Act may impact your specific financial situation, please consult with your tax, legal, or financial advisor(s).

Please contact Patrick J. Mahany, Vice President for Institutional Advancement at pmahany@otis.edu to discuss how your gift can help further our mission.

Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. Reference to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.