In 2020 the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided increased tax incentives in an effort to boost charitable giving for the year. This provision has been extended and expanded in 2021.
An allowance of cash gifts to WCN for those who take the standard deduction:
For those who generally take the standard deduction, instead of itemizing deductions, for their income taxes, the CARES Act allows for an additional deduction of up to $300 for cash gifts for single filers or $600 for married couples to nonprofits like WCN.
100% deductibility for cash gifts for those who itemize
For those who generally itemize their deductions for their income taxes, the CARES Act raised the limit on the deductibility of charitable donations, increasing it from 60% of adjusted gross income (AGI) to 100% of AGI for cash gifts to nonprofits like WCN.
Contributions to donor advised funds and charitable checking funds do not qualify for this additional deduction, you can learn more here. As always, we encourage you to check with your tax professional for any advice.