CARES Act Extension for 2021 on Charitable Giving Incentives


Did you know that the CARES Act* created charitable giving incentives for donors to 501c3 non-profit organizations?

  • Taxpayers who do not itemize deductions may take an above-the-line deduction on their 2020 return for qualified charitable contributions in an amount not to exceed $300 for individuals, but with the 2021 extension, if you are filing jointly, it may be up to $600.

  • The charitable giving cap for those who do itemize has been raised from 60 percent of adjusted gross income to 100 percent which has been extended for 2021.

  • For corporations, the annual charitable giving limit has been increased from 10 percent to 25 percent of the corporation’s taxable income.

*See Section 2204 of the CARES Act for more information and be sure to speak with an accounting professional to answer questions specific to your tax filings.

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