The Taxpayer Certainty and Disaster Tax Relief Act of 2020, extended through the end of 2021 will allow more Americans to easily deduct up to $600 in donations to qualifying charities on their 2021 federal income tax return.
Ordinarily, people who choose to take the standard deduction cannot claim a deduction for their charitable contributions. But this temporary law change now permits individuals to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations like Mentors International. Nearly nine in 10 taxpayers now take the standard deduction and could potentially qualify.
Under this provision, individual tax filers, including married individuals filing separate returns, can claim a 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.
Always be sure to work closely with your own tax advisor for guidance in applying these new rules to your own situation.