Looking for some tax saving ideas for 2021? Well here are a few you might want to consider:

Non-Itemizer’s Charitable Deduction

The CARES Act included a $300 “above-the-line” charitable deduction for taxpayers who do not itemize—and there are more of those than ever with the higher standard deduction. Extended for 2021, it was also expanded to allow a married couple filing a joint return to claim a $600 deduction. So, encourage your favorite charity with a gift, and save some taxes in the process.

100% AGI Deduction for Cash Gifts in 2021

Did you know through the CARES Act, in 2021 you can deduct 100% of your adjusted gross income (AGI)? 

The consolidated Appropriations Act of 2021 includes some charitable benefits of the CARES Act, passed in 2020, that have been extended, One the benefits is the extension of the income tax charitable deduction for cash gifts to public charities up to 100% of your AGI. 

Charitable IRA Rollover

For those age 70 ½ and older, if you have an IRA, you can transfer up to

$100,000 per year to qualified charitable interests; $200,000 per year for a couple who each has an IRA.  Charitable IRA transfers are not taxed and count towards the annual Required Minimum Distribution.

Would you like income for life and a tax deduction? Consider a Charitable Gift Annuity

A charitable gift annuity (CGA) is an agreement between you and a charitable organization in which you transfer an asset to the organization and the organization returns lifetime payments to you. The annuity can be set up over a period of one or two lifetimes — one of which is often yours — at a percentage rate established at the start.  The percentage rate is based on the age of the annuitant(s).  When you establish a CGA you receive an immediate income tax deduction. The benefits of a CGA include a charitable deduction, avoidance of up-front capital gains tax on the transfer, possible increased funds and tax-advantages payments.

CentraState Healthcare Foundation partners with Thompson & Associates to provide free consultations on existing estate plans and assistance with development of new plans. Tracey Atwater, vice president at Thompson & Associates, provides personalized and confidential sessions, and helps you build an estate plan based on your values. She does not sell any services, invest any money, or draft specific documents.  Her consultation services are free of charge with no obligation on your part.   Please contact Sharon Purpuro, Director of Donor Relations at spurpuro@centrastate.com or 732-294-7135 if you would like to meet with Ms. Atwater to determine if her services would benefit you at this time in your tax/estate planning process. Thank you.
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.