Will We See Charitable Gift Breaks Post 2021?

As a result of the coronavirus pandemic, we saw an expansion of tax incentives for donors with the goal of assisting nonprofits and their communities. The Coronavirus Aid, Relief and Economic Security Act passed in March 2020 provided an above-the-line deduction for both single and married taxpayers of $300. 

This was extended and increased with the passing of the Consolidated Appropriations Act in December of 2020, which provided a more generous $600 above-the-line charitable deduction for gifts made in 2021.

As we near the halfway mark of the 2021 tax year, there have been bipartisan discussions on whether to extend these benefits to taxpayers who do not itemize.  Proposals for expanding the tax breaks continue to focus on addressing the economic fallout from the pandemic while also allowing a deduction for working families that claim the standard deduction and would typically not benefit from a tax perspective.

One of the proposed bills titled the Universal Giving Pandemic Response and Recovery Act (S. 618), which was presented by Sen. Chris Coons, D-Del. and Sen. James Lankford, R-Okla., proposes to raise the above-the-line charitable deduction to one-third of the standard deduction for 2021 and 2022. This would increase the cap to approximately $4,183 for single taxpayers and $8,367 for married taxpayers in 2021.

Lawmakers are also reviewing other ways to expand charitable giving incentives such as the cap of 60% of adjusted gross income for taxpayers who itemize that is set to expire and revert back to 50% after 2025.  

The tax professionals at Schneider Downs continue to monitor these discussions, but if you have any questions on the current law, please contact Schneider Downs.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2024 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
PA Tax Credit Aggregation
House of Representatives Approves Tax Relief for American Families and Workers Act
IRS Modifies Position on Grantor Trust Tax Reimbursement Clauses
Tax BY Kirk Mitchell
Proposed Bipartisan Tax Plan Released – Overview of the Tax Relief for American Families and Workers Act of 2024
Automobile, Tax BY Steven Barber
Dealers Get an Extension for Time-of-Sale Reports for EVs
Automobile, Tax BY Steven Barber
Shocking! A Dealer Reporting EV Sales to the IRS is Confusing!
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.