Enhanced charitable deductions in 2021

Description

Abstract: Those who are charitably inclined should keep in mind that last year’s CARES Act — supplemented by the Consolidated Appropriations Act of 2021 (CAA) — enhanced several charitable tax incentives for donations made through the end of 2021. For individuals who itemize, eligible charitable donations in 2021 are deductible up to 100% of adjusted gross income, a jump from 60%. This article discusses the requirements for this deduction as well as the above-the-line deduction for non-itemizers.