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"Above the Line" 2021 Charitable Deduction

  • 1.  "Above the Line" 2021 Charitable Deduction

    Posted 12-13-2021 01:31 PM
    The IRS is reminding us - to remind our donors - of a special one-time charitable deduction for 2021.

    As you know, the near doubling of the standard deduction back in 2018 made it unlikely donors would need to itemize - and therefore unable to claim deductions for charitable donations.

    However, incentives passed to address Pandemic economic issues allowed for an exception to this "rule" last year and this.

    For 2021, individuals can claim up to $300 in charitable donations regardless of their filing status.  For joint filers that amount is doubled ($600).

    Here is a snippet from an announcement the IRS sent out just a few minutes ago:

    WASHINGTON - The Internal Revenue Service joined today with several leading nonprofit groups to highlight a special tax provision that allows more people to deduct donations to qualifying charities on their 2021 federal income tax return.

    The Independent Sector and National Council of Nonprofits joined with the IRS to highlight this pandemic-related provision where married couples filing jointly can deduct up to $600 in cash donations and individual taxpayers can deduct up to $300 in donations.

    Under the temporary law, taxpayers don't need to itemize deductions on their tax returns to take advantage of this, which creates tax-favorable donation options not normally available to about 90 percent of tax filers. Ordinarily, people who choose to take the standard deduction cannot claim a deduction for their charitable contributions. But this special provision permits them to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations by year's end, Dec. 31, 2021.

    John H. Taylor
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987