In an effort to encourage charitable giving and further support nonprofit organizations in America, the CARES Act has established additional tax incentives for individuals and corporations. Your year-end gift has the potential to go farther during this tax season than in previous years. With this in mind, we hope that you will consider making a charitable donation to UCP-OC!
Please see below for information on how you can take advantage of the generous tax benefits provided by the CARES Act:
If you utilize the standard deduction, you may reduce your taxable income by up to $300 per taxpayer, or $600 per married couple, through annual charitable contributions to qualified charities. This is an “above the line” adjustment to income that will reduce your adjusted gross income.
If you itemize deductions, you may elect to deduct cash contributions to qualified charities of up to 100 percent of your 2021 adjusted gross income. For corporations, 25 percent of taxable income may be deducted.
401k and other Individual Retirement Accounts may be able to reduce their taxable balance by contributing any amount directly to a qualified charity. Furthermore, contributions made from your retirement account may avoid income taxes.
Additional IRS Resources
For further reading on the CARES Act, please visit https://www.irs.gov/newsroom/expanded-tax-benefits-help-individuals-and-businesses-give-to-charity-in-2021
*The information provided by UCP-OC is not intended as tax or legal advice. We recommend that you consult your personal advisor to ensure that you are maximizing your charity contribution in an efficient manner.