Updates to the CARES Act

For 2021, the Act extends and modifies the $300 charitable deduction for non-itemizers and increases the maximum amount that may be deducted to $600 for married couples filing jointly. (Note that for tax year 2020, $300 is the maximum allowed per tax return, regardless of filing status.)

 

This means that for 2021 you can again reduce your taxable income (and income tax) while supporting the students and programs of Idaho State University. This deduction is available only to gifts to qualified charities, like Idaho State University Foundation.

 

There is also good news in the Act for those who itemize their deductions. The Act extends a provision of the CARES Act that allows itemizers to deduct charitable deductions up to 100% of adjusted gross income. Prior to the CARES act, this limit was 60%. A corporation can deduct up to 25% of its taxable income on qualified cash contributions. Prior to the CARES act, this limit was 10%. The ACT extends these provisions for one year, through 2021.

 

Please note: These income limits apply only to gifts to public charities: the old limits apply to gifts to private foundations and gifts to Donor Advised Funds. If your assets are substantial enough that you can give more than your income this year, you won't lose the deduction for the excess amount. You can carry it forward to the next year, just like in years past.

 

To learn how your gift will benefit your tax situation, please contact your tax adviser. To learn how your gift will make a lasting difference to our students, contact us! We are ready to help you make a difference.

 

IDAHO STATE UNIVERSITY ADVANCEMENT

921 South 8th Ave, Stop 8050
Pocatello, Idaho, 83209-8050