Dear Supporter ,
Asalamu Alaikum,
Your charity, including Zakat and Sadaqa, may be eligible for additional tax benefits this year.
The Internal Revenue Service announced expanded tax benefits that can help both individuals and businesses give to charity before the end of 2021.
The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted last December, provides several provisions to help individuals and businesses who give to charity. The new law generally extends, through the end of 2021, four temporary tax changes originally enacted by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Here is a rundown of these changes:
- Deduction for individuals who don't itemize; cash donations up to $600 qualify
- 100% limit on eligible cash contributions made by itemizers in 2021
- Corporate limit increased to 25% of taxable income
- Increased limits on amounts deductible by businesses for certain donated food inventory
You can read more about these expanded tax benefits on the IRS website. Please consult with your tax accountant and/or financial advisor regarding how these tax benefits might serve you.
As 2021 comes to a close, now is the time to fulfill your pledges, give Sadaqa contributions, and pay Zakat remaining with you. Make a tax-deductible donation to Zakat Chicago at zakatchicago.com/donate.
