Federal Tax

Special Charity Tax Deduction

As we approach the end of the year, be aware that taxpayers are allowed a special charitable contribution deduction for 2021 even if they don’t itemize. Ordinarily, people who claim the standard deduction on their tax returns can’t claim a deduction for their charitable donations. But a temporary law change permits them to claim a limited deduction of up to $300 for cash contributions made to qualifying charities during 2021. The maximum deduction is increased to $600 for married individuals filing joint returns. Nearly nine in 10 taxpayers now take the standard deduction and could potentially qualify. Here are more details from the IRS. For questions, contact Cg Tax, Audit & Advisory. © 2021