As a part of the Consolidated Appropriations Act of 2021, Congress has provided several economic incentives to help address the far-reaching effects of the COVID-19 pandemic, including additional tax incentives to encourage charitable giving. Note that these incentives are temporary and are scheduled to expire at the end of 2021.
For the 2021 tax year, you may deduct cash contributions to Planned Parenthood Federation of America and most other public charities to offset up to 100% of your income. Ordinarily, the income tax charitable deduction for cash gifts is limited to 60% of your income. This 100% limit allows especially generous donors to reduce their federal income tax to zero. Unused cash contribution deductions can be carried forward for up to five years.
Check with your financial advisors to determine whether the 100% deduction makes sense for your specific circumstances.
If you do not itemize your deductions, you can reduce your taxable income by up to $300 — or $600 for married couples filing jointly — for contributions of cash to public charities.
Qualified charitable distributions are still a great way to make contributions if you are 70½ or older. A qualified charitable distribution (“QCD”) allows you to make a tax-free gift of up to $100,000 to Planned Parenthood Federation of America from your IRA if you are 70½ or older. A qualified charitable distribution is a great way to make tax advantageous contributions, especially if you don’t itemize your deductions.
Your priorities for your family and loved ones are important, and we know that their health and financial well-being comes first. We are here to help you shape a charitable gift plan that suits your needs and allows you to keep helping with our crucial work. Please contact the Gift Planning team at [email protected] or call 800-806-8628 to learn about the many ways you can support Planned Parenthood Federation of America.