Deduct Cash Charitable Donations for 2021 while taking the Standard Deduction

For the 2021 tax year, taxpayers are able to deduct up to $300 of cash charitable donations ($600 if married filing jointly) even when taking the standard deduction.

Prior to 2020, taxpayers were only able to deduct charitable donations if they itemized their deductions. As a result of the increased standard deduction amounts, fewer taxpayers benefit from itemizing their deductions and are less incentivized to contribute to charities. To help incentivize taxpayers, even while taking the standard deduction you’re able to deduct a limited amount of cash charitable donations for the 2020 and 2021 tax years.

Cash charitable donations include donations via cash, check, credit card, or electronic payment methods to qualified charities.

Additional Reading: IRS Newsroom Release

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Please note: the information on this website is intended to provide general advice to start the discussion with your tax professional. The information on this website may not apply to your specific situation. Only an experienced professional with the details of your specific situation can advise you on making the best decision. Contact me or your tax professional to discuss the information on this site to make an informed decision.