article
February 12, 2021

CARES changes incentivize charitable contributions

Source:  NYSUT Accounting
U.S. Capitol

The recently passed Coronavirus Relief Act (CARES) and subsequent extenders provide some good news for all union members when it comes to filing their personal income tax returns. It offers new charitable giving incentives to help charitable organizations through this difficult time

For the 2021 calendar year, an individual who does not itemize their deductions on their individual income tax return may deduct monetary contributions of up to $600 (for married filing joint filers, or $300 for single filers) made to 501(c)3 charitable organizations. This is an increase to the maximum amount allowed for 2020 monetary charitable contributions of $300.  This will be an ”above the line” deduction in the main body of the individual tax form and will not require the taxpayer to itemize using Schedule A. Individuals who continue to itemize contributions on Schedule A will still have the ability to claim a portion of their donations, up to the maximum amount allowed each year, as “above the line” charitable deductions such as these.

Additional information about the 2020 deduction can be found on the IRS website. Please consult your personal tax preparer with questions specific to your unique tax circumstances.

Please consider making a contribution to the NYSUT Disaster Relief Fund, a 501(c)3 charitable organization,to take advantage of this new tax benefit.