Due to the pandemic, charity donations are needed more than ever. And, with charitable tax deductions, your 2021 generosity will be rewarded come tax season — thanks to an extension of benefits under the CARES Act.
The provision allows a married couple filing jointly to get double the deduction for 2021 — if they make $600 in cash gifts to charity. (Note, gifts to donor-advised funds and private foundations do not count.)
Non-itemizers get a charitable deduction too! (Most of us no longer receive tax benefits for charitable gifts because we take the standard deduction and don’t itemize deductions.)
For a married couple filing jointly who take the standard deduction in tax year 2021, if they give $600 to charity, they’d get the $600 tax break in addition to the standard deduction ($12,550 for individuals and $25,100 for joint filers).
So, those who give a gift will also receive one whether they itemize or take the standard deduction!