2021 COVID Relief Updates

A  new federal stimulus bill was signed into law on Dec. 27, 2020. The bill for pandemic relief extends charitable tax deductions from the previous legislation known as the CARES Act. These extensions include:

1. Non-itemizers eligible for $300 tax deduction

The previous stimulus legislation allowed deductions of up to $300 in charitable gifts in 2020 for people who don’t itemize their taxes. The new measure extends this benefit through 2021 and expands the available deduction from $300 per return to $300 per single filer or $600 for those married and filing jointly.

The adjustment does not apply to gifts made to a Donor Advised Fund.

2. Cap on deduction for cash gifts lifted

Individuals who itemize may continue to deduct annual contributions up to 100% of their adjusted gross income for cash gifts made to nonprofits. This adjustment may be attractive to donors who wish to make a large cash donation.

Gifts made to a Donor Advised Fund do not qualify for the increased deduction.

3. Corporate giving limit stays at 25%

For corporate charitable giving, the annual limit will stay at 25% of taxable income in 2021 instead of reverting to 10 percent.   

As always, we recommend discussing all financial matters with your professional advisor(s) to determine applicability to your individual tax situation.

We’re here to help.

It is suggested that you consult your advisors about these provisions, and contact the Boston College Gift Planning team at 800-304-SHAW or by email at giftplanning@bc.edu if we can help you with any gift-planning opportunities.