Charitable Deduction for Non-Itemizers Extended Through 2021
Charitable Deduction for Non-Itemizers Extended Through 2021
Ever since the Tax Cuts and Jobs Act nearly doubled the standard deduction, far fewer taxpayers are itemizing deductions. Generally, taxpayers who don’t itemize are unable to deduct charitable contributions. But last year’s CARES Act provided non-itemizers with an above-the-line deduction (in other words, a deduction from gross income in calculating adjusted gross income) of up to $300 in eligible donations in 2020.
The deduction was available only for cash gifts to public charities other than donor-advised funds or supporting organizations. There was some uncertainty about whether joint filers were entitled to a $600 above-the-line deduction, but in the 2020 instructions to Form 1040, the IRS clarified that the $300 deduction limit applied to both individuals and married couples filing jointly. The CAA extended the above-the-line charitable deduction through 2021 and increased the deduction to $600 for joint filers.
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