30 Nov There’s still time to make the most of the CARES Act

Did you know you can make a tax-deductible charitable donation even if you don’t itemize your deductions on your tax return?

In 2020, as part of the CARES Act, Congress approved a special, above-line tax deduction for cash gifts to qualified charities up to $300.

In 2021, Congress expanded this charitable deduction to $300 per individual, allowing you to double your potential deduction.  If you are a married couple, you can deduct up to $600 per couple filing jointly in cash gifts made to qualified charities through December 31, 2021.

Note: the above-line deduction is for gifts made directly to charities, like Atlanta RMHC.  Gifts to donor advised funds and private foundations do not qualify for the above-line deduction.

Other extensions to the CARES Act set to expire at year end include 100% limit on eligible cash contributions made by itemizers in 2021.

The CARES Act permits electing individuals to apply an increased limit, up to 100% of their AGI, for qualified contributions made during calendar-year 2021. Qualified contributions are contributions made in cash to qualifying charitable organizations, like Atlanta RMHC. Excess contributions may be carried forward for up to five tax years.

There are even more ways to save on taxes while benefiting charities, such as gifting appreciated stocks or donating your required IRA withdrawal in 2021.

If you would like to gift appreciated stock to Atlanta RMHC and save on capital gains taxes while helping families with ill or injured children, or wish to explore other impactful ways to give, please contact Marissa Greider, Senior Director of Major and Planned Gifts, at marissa.greider@armhc.org or 678.704.8088 and visit armhc.org/legacy.

As always, we recommend you talk to your tax adviser about how these strategies could benefit you.

To learn more about these provisions, visit the IRS website.