Tax-Smart Giving: A Win-Win for Your Clients and the Community

Charitable giving can help your clients meet their financial and philanthropic goals. Below are ways your clients may benefit from charitable giving using the tax tables on this page.

  • Avoid capital gains and receive a tax deduction by donating highly appreciated stock.
  • If part of all of a required minimum distribution from an IRA is not needed, avoid paying taxes on it.
  • With the increased standard deduction, itemizing charitable gifts may be difficult; clients may opt to bunch their donations using a donor-advised fund.
  • An unusually high-income year may send a client looking for tax deductions.
  • Clients looking ahead to leave a legacy by supporting charities and causes they find important.

Why Do Clients Give to Pinellas Community Foundation?

  • Simplicity — PCF handles paperwork, record keeping, gift acceptance, grantee due diligence, and tax filing.
  • Low cost — starting a fund is FREE.
  • Tax benefits — donations are deductible up to 60% of adjusted gross income for cash gifts and 30% for stocks, mutual funds, and real estate.
  • Tax planning — reduce taxes by bunching donations in certain years, but give grants to charity over time.
  • Generational giving made simple — involve your children, grandchildren, and other family members in your charitable giving and planning.
  • Anonymity — at your choice, giving through PCF can be anonymous to other charities.
  • Expertise — use the knowledge and experience of PCF to help you learn about local issues, causes, and nonprofit organizations.

Options for Giving

  • Donor-Advised Funds are a flexible and simple tool to donate to today but grant funds to charities over time.
  • Restricted Funds allow donors to support their favorite charitable organizations forever.
  • Field of Interest Funds help donors support a specific cause or focus and PCF grants funds to charities that meet the need.
  • Discretionary Funds provide the flexibility to meet both the needs of today and the future.
  • Scholarship Funds can benefit students by naming a particular school or educational focus.

Charitable Giving Notes for 2021

  • Donors may deduct up to 100% of AGI for qualified charitable contributions made by itemizers (in most years, this is limited to 60% of AGI). Such gifts must be made in cash to public charities or a “50% charity”).
  • Non-itemizers can deduct up to $300 of qualified charitable contributions in computing 2021 AGI; deduction may be up to
    $600 for a joint return.

Individual Tax Brackets 2021

Taxable IncomeAmount Owed
Single
$0 – $9,95010% of taxable income
$9,951 – $40,525$995 + 12% of the amount over $9,950
$40,526 – $86,375$4,664 + 22% of the amount over $40,525
$86,376 – $164,925$14,751 + 24% of the amount over $86,375
$164,926 – $209,425$33,603 + 32% of the amount over $164,925
$209,426 – $523,600$47,843 + 35% of the amount over $209,425
Over $523,600$157,804.25 + 37% of the amount over $523,600
Married Filing Jointly
$0 – $19,90010% of taxable income
$19,901 – $81,050$1,990 + 12% of the amount over $19,900
$81,051 – $172,750$9,328 + 22% of the amount over $81,050
$172,751 – $329,850$29,502 + 24% of the amount over $172,750
$329,851 – $418,850$67,206 + 32% of the amount over $329,850
$418,851 – $628,300$95,686 + 35% of the amount over $418,850
Over $628,300$168,993.50 + 37% of the amount over $628,300
Head of Household
$0 – $14,20010% of taxable income
$14,201 – $54,200$1,420 + 12% of the amount over $14,200
$54,201 – $86,350$6,220 + 22% of the amount over $54,200
$86,351 – $164,900$13,293 + 24% of the amount over $86,350
$164,901 – $209,400$32,145 + 32% of the amount over $164,900
$209,401 – $523,600$46,385 + 35% of the amount over $209,400
Over $523,600$156,355 + 37% of the amount over $523,600

 

Standard Deduction

Filing Status2021 Deduction2020 Deduction
Single$12,550$12,400
Married Filing Jointly (MF)$25,100$24,800
Married Filing Separately (MFS)$12,550$12,400
Head of Household$18,800$18,650

 

Long-Term Care Insurance Annual Premium Deduction

 20212020
Over 70$5,640$5,430
61 to 70$4,520$4,350
51 to 60$1,690$1,630
41 to 50$850$810
40 and under$450$430

 

Estate Taxes / Gift Taxes

 20212020
Estate Tax Exemption — Individual$11,700,000$11,580,000
Top Estate Tax Rate40%40%
Annual Gift Tax Exclusion — Gifts per person$15,000$15,000
Annual Gift Tax Exclusion — Joint gifts by spouse$30,000$30,000

 

Capital Gains Taxes

Holding PeriodTop Capital Gains Rate
12 months or lessOrdinary income rate, max rate is 37%1
More than 12 months0%2,15%, or 20%3
Depreciation recapture on real estate25% (for Section 1250 real property)
39.6% (for Section 1245 property)
Collectibles and certain small business stock428%
1. Capital gain may be subject to an additional 3.8% Medicare tax.
2. Zero if in 10-12% bracket. Otherwise,15%.
3. Rate for taxpayers in the middle of the 35% bracket and above.
4. Small business stock has a cap of $10 million or 10 times adjusted basis of the stock, whichever is greater.

 

Parameters for Deferrals from Retirement Plans

 20212020
Maximum elective deferral to 401(k) and 403(b) plans$19,500$19,500
Catch-up contribution limit for 401(k) and 403(b) plans$6,500$6,500
Maximum elective deferral to SIMPLE IRAs $13,500$13,500
Catch-up contribution limit for SIMPLE Retirement Plans*$3,000$3,000
IRA contribution limit$6,000$6,000
Catch-up contribution limit for traditional Roth or IRAs*$1,000$1,000
Annual limit on additions to defined contribution plans$58,000$57,000
Defined benefit plan annual benefit limit$230,000$230,000
Annual compensation limit$290,000$285,000
Maximum elective deferral to 457 plans of exempt employers$19,500$19,500
Threshold amount to determine if someone is a key employee in top-heavy plans$185,000$185,000
Threshold amount to determine if someone is a highly compensated employee$130,000$130,000
Social Security wage base$142,800$137,700
Medicare wage baseNoneNone
*Individuals who are at least age 50 at the end of the calendar year can make annual catch-up contributions.

 

RMD Uniform Lifetime Table

Required Minimum Distributions The Uniform Lifetime Table can be used by all IRA owners at age 70 1/2 years, unless their sole beneficiary for the entire year is a spouse who is more than 10 years younger. Then the regular Joint Life Expectancy Table is used (see IRS Pub. 590), which could reduce the required minimum distribution even further.
Age Account Owner2021 Distribution Period2020 Distribution Period
7027.4Suspended
7126.5Suspended
7225.6Suspended
7324.7Suspended
7423.8Suspended
7522.9Suspended
7622.0Suspended
7721.2Suspended
7820.3Suspended
7919.5Suspended
8018.7Suspended
8117.9Suspended

Health Savings Accounts (HSAs) Annual Contribution Limits

 20212020
Individual$3,600$3,550
Family$7,200$7,100
Age 55 or older$1,000 additional$1,000 additional

 

Standard Mileage Rates

 20212020
Business56 cents per mile57.5 cents per mile
Moving16 cents per mile17 cents per mile
Medical16 cents per mile17 cents per mile
Charitable14 cents per mile14 cents per mile

 

Front page of the PCF Tax Guide showing tax tables for 2020-2021.

Download the Tax Guide

We Can Help

Duggan Cooley, CFRE

Duggan Cooley, CFRE

CEO

727-531-0058

Leigh Davis

Leigh Davis

Director of Donor & Advisor Relations

727-306-3142

Pinellas Community Foundation is a 501(c)(3) nonprofit organization registered with the state of Florida. A copy of the official registration and financial information for Pinellas Community Foundation (CH3646) may be obtained from the Division of Consumer Services by calling toll-free within the state 1-800-HELP-FLA (435-7352) or visiting www.FDACS.gov. Registration does not imply endorsement, approval, or recommendation by the state. Your gift may be tax-deductible; please consult your tax professional to explore your benefits.

Become a Strategic Partner
with Pinellas Community Foundation

The staff and board of Pinellas Community Foundation are ready to work with you and your clients. To explore philanthropic options for your clients, please call 727-531-0058 or use the form below to email us.