• Contact
January 9, 2021
Non-itemizers can deduct up to $300 in charitable contributions

Beginning with tax year 2020, taxpayers may claim up to $300 in charitable cash donations, in addition to the standard deduction.

As background, individual taxpayers claim a standard deduction or itemize deductions like mortgage interest, property taxes, and charitable contributions. The 2018 tax code increased the standard deduction, while limiting certain itemized deductions.

As a result of these changes, less people are itemizing.

Fewer itemizers means less people claiming charitable donations as a deduction on tax returns. A concern arising after passage of the 2018 tax code is whether this change would impact donations; in particular, those contributions made by fixed-income and middle-class donors.

To combat these concerns, beginning with tax year 2020, Congress is allowing a special, ‘above-the-line’ deduction of up to $300. ‘Above-the-line’ means this charitable deduction can be claimed in addition to the standard deduction.

One caveat: the charitable contribution must be cash (or check). No clothing donations, etc.

Copyright © 2021 J. Hunter Company  ·  Terms  ·  Privacy