As December 31 approaches, tax filers should be aware of a provision in the CARES act passed last year for 2021. While many choose to file itemized deductions, those who utilize standard deductions on their federal taxes have a unique opportunity for additional deductions to charitable organizations.
The CARES act, passed on December 27, 2020 includes in it an above-the-line deduction on federal taxes of $300 ($600 for joint returns) for charitable donations in 2021.
“This is a great way for our community members to save in taxes while giving to the community,” says David Calliott, United Jewish Federation of Tidewater’s Young Adult Leadership chair. “While charitable deductions used to only apply to those who itemized, this change helps everyone who uses the standard deduction as well.
“I hope everyone looks at what they have given this year, and if they haven’t reached the $300/600 thresholds, thinks about how they can try to get to those levels in order to realize the maximum tax benefit for themselves and the community,” says Calliott.
This has been a record breaking year for the US stock market.
Protect your profits by donating appreciated stocks. Transferring shares of stocks, bonds, or other appreciated securities allows you to avoid capital gains. Call or email in advance (pmalone@ujft.org or 757-965-6115) to tell UJFT the name(s) and quantity of shares you’re transferring, so we’ll know exactly how to apply them.
Those looking for information about making or increasing their charitable gift to the United Jewish Federation of Tidewater can visit jewishva.org or contact Matt Kramer-Morning at mkmorning@ujft.org. To-date, this benefit has not been extended into the 2022 tax year. Anyone with questions about the CARES act or their Federal taxes are encouraged to contact their tax advisors or visit the IRS website at www.IRS.gov.
Matthew Kramer-Morning is the Young Leadership Campaign director at United Jewish Federation of Tidewater.
-Matthew Kramer-Morning