2021 TAX INFORMATION:
Ordinarily, individuals who elect to take the standard deduction cannot claim a deduction for their charitable contributions. The law now permits these individuals to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to certain qualifying charitable organizations. These individuals, including married individuals filing separate returns, can claim a deduction of up to $300 for cash contributions made to qualifying charities during 2021. The maximum deduction is increased to $600 for married individuals filing joint returns.
IRA CHARITABLE ROLLOVER:
The IRA charitable rollover allows taxpayers to make tax-free charitable gifts directly from their Individual Retirement Accounts to eligible charities, including colleges, universities and independent schools.
Currently, the provision:
- Caps qualified charitable IRA distributions at $100,000 per person per year,
- Precludes the funding of gift annuities and similar life income plans and
- Applies only to donors age 70½ or older.
The provision was permanently extended on Dec. 18, 2015.