New Charitable Giving Incentives

Building on years of advocacy by theatres in partnership with the broader nonprofit sector, a new universal charitable deduction is available, allowing the growing number of taxpayers who do not itemize their returns to receive a tax deduction for charitable donations. For the calendar year 2020, the deduction is available for up to $300 in cash charitable donations to 501(c)(3) nonprofit organizations for “each filing unit,” which means the dollar limitation applies per tax return, regardless whether filed individually, or jointly by a couple. The new universal charitable deduction for non-itemizers that was created under the CARES Act has been extended to apply throughout the 2021 tax year, and expanded so that single filers may deduct up to $300, and joint filers will be eligible for a $600 deduction for cash contributions.

In both 2020 and 2021, for taxpayers that itemize returns the limit on the total percentage of Adjusted Gross Income (AGI) eligible for the charitable deduction has been lifted, and the limit on corporate contributions has been raised to 25%.