For 2021, giving to charity pays. The Consolidated Appropriations Act (CAA) extended numerous provisions contained in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law in March 2020.

This latest update is designed to make it easier for you to help St. Louis Association of Community Organizations (SLACO), or any nonprofit organization facing economic hardship caused by the pandemic.

The updated law allows all taxpayers to take an above-the-line charitable deduction of up to $300 for individuals and $600 for married couples who file joint returns in 2021 for those who do not itemize deductions. You might think that this is a small amount and would not make a difference. But what if all of our donors gave “just” $600? Such support would have a huge impact on those we serve. At this time, a donor-advised fund (DAF) does not qualify for this new deduction.

Please note that the above applies to federal taxes only; state law may vary. For detailed questions on tax implications, please consult with a financial advisor.