More Than One Reason to Give Charity

Feb 28, 2021

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More Than One Reason to Give Charity

In 2018, the drastic increase to the standard deduction resulted in far fewer taxpayers claiming itemized deduction. According to the IRS, nearly 90% of taxpayers no longer use an Itemized Deduction and as a result only 10% of all taxpayers can get a tax benefit from charitable contributions.

Congress decided to encourage nonitemizers to increase their donations and passed new rules for 2020 and 2021. Taxpayers can now claim a modest tax deduction even when taking the standard deduction.

For 2020, the Form 1040 allows a deduction up to $300 per return for married couples filing joint returns and single filers. The deduction is $150 for married couples filing separate returns.

For 2021, the Form 1040 allows a deduction up to $600 per return for married couples filing joint returns. The deduction is $300 for married couples filing separate returns and single filers.

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