Updates to CARES Act for 2021: Increased Deductions for Charitable Contributions – American Film Institute

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Updates to CARES Act for 2021: Increased Deductions for Charitable Contributions

As a nonprofit, AFI relies on the support of movie fans – like you – who believe in our mission to empower storytellers and inspire audiences. We are deeply appreciative of your commitment to AFI during these times and want to share how recent legislation extends the “CARES” Act and its benefits – and how it can help you deduct your donations to AFI.

For those who don’t itemize their taxes…

The CARES Act continues to allow for up to $300 in charitable contributions to be an above-the-line deduction, meaning you don’t have to itemize to claim the deduction. Contributions must be cash donation(s) to qualified charities.

New for 2021, for those who are married or filing joint returns…

The new tax law changes allow for up to $600 in charitable contributions to be an above-the-line deduction, meaning you don’t have to itemize to claim the deduction. Contributions must be cash donation(s) to qualified charities.

Here is a quick explainer from Forbes:

The first change is an above-the-line tax deduction for gifts of cash to charity of up to $300 for individuals and up to $600 for joint filers for 2021. It’s basically an extension and enhancement of the new one-year tax break Congress put in for 2020 under the pandemic relief CARES Act: a tax deduction for cash gifts to charity up to $300. The difference is that for 2020, the deduction is limited to $300 per tax return. The new provision allows a married couple filing jointly to basically get double the deduction for 2021 if they make $600 in cash gifts to charity. Gifts to donor-advised funds and private foundations do not count. Read more.

For those who do itemize…

The new tax law extends the cap increase on annual giving to 100 percent of adjusted gross income.

For corporate charitable giving …

The new tax law extends the annual limit of 25 percent of taxable income for corporations. 

 

If you would like to support AFI and take advantage of the new charitable giving deductions, please visit our support page or email [email protected].

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