Tax Tip
Taxpayers who take a standard deduction on their taxes CAN take limited deductions of charitable contributions in 2021.
The stimulus package extends through 2021 the CARES Act’s allowance for up to $300 of a taxpayer’s charitable contributions to qualify as an above-the-line deduction. It increases the amount to $600 for married couples filing joint returns.
This means, for 2021, you don’t have to itemize deductions in order to claim the $300 for an individual (or $600 married filing jointly) as a deduction. Qualifying donations must be made in cash or cash equivalents (as opposed to stock or old vehicles, for example).
