Give by Dec. 31 to Receive Special 2021 Tax Advantages
We have an important reminder for anyone who gives generously to qualifying nonprofit organizations, including United Way of Metropolitan Dallas. You can claim a deduction of up to $300 for charitable donations made by Dec. 31, 2021.
The new universal tax break for charitable donations, which is part of the 2020 CARES Act, grants taxpayers an “above-the-line” deduction for up to $300 in charitable donations given in 2021. For example, if you take the standard deduction and give $300 to charity, you will get a $300 tax break in addition to the standard deduction.
The end of the year is the perfect time to take advantage of this opportunity and invest in United Way of Metropolitan Dallas to directly benefit our community.
Here is the tax benefit breakdown for those taking standard deductions, itemized deductions and corporate giving:
For people who take the standard deduction, the CARES Act allows you to take a tax deduction for contributions made to qualified charitable entities up to $300 per year. This deduction is “above-the-line.” The 2021 standard deduction is $12,950 for individuals and $25,100 for married couples filing jointly. Therefore, any donation to qualifying charities of up to $300 will be added to the standard rate of deduction.
For people who file for itemized deductions, the CARES Act allows you to take a tax deduction of up to 100% of your adjusted gross income (AGI) for contributions to qualifying charities. The new law temporarily lifts the limits on charitable giving from 60% of a taxpayer’s AGI to 100% for 2021.
For corporate donors, the CARES Act allows an entity to take a tax deduction of up to 25% of their adjusted tax income for contributions to qualifying charities. The new law temporarily lifts the limits from 10% of adjusted taxable income to 25% for 2021.
Other Giving Options
Did you know you have multiple options for making a gift to United Way of Metropolitan Dallas? You can choose to give stock, donate retirement assets such as an IRA distribution, give to a donor-advised fund (DAF) and more. For more information, please email email@example.com.
This article was published on: Dec 13, 2021