Above-the-Line Charitable Contributions Extended to the 2021 Tax Year
The CARES Act of 2020 added an "above-the-line" tax deduction for non-itemizers on 2020 individual returns. The deduction is up to $300 in cash contributions to qualified charities per return in 2020.
The Consolidated Appropriations Act of 2021 signed into law in late December extended this provision to 2021 returns and also modified the allowable deduction up to $600 for married filing joint returns. The $300 maximum still applies to all other filing statuses.
The new law also extends the increase in the AGI limitation for charitable contributions for itemizers on individual returns from 60% to 100% of AGI.
GW, CPAs | 01/20/2021