2021 Charitable Contributions

Just a reminder that the 2021 CARES Act included a provision that allows up to a $300/$600 (single/joint) ‘above the line’ deduction foe charitable contributions made in 2021. That means the deduction is taken on the 1040 before calculating AGI and does not require itemized deductions. The contribution(s) must be to a public charity (not a donor advised fund) and be in cash (not goods).

Write those checks today.

Thanks. That is good to know. Earlier this year we as a family selected three charities to donate to monthly. My wife, daughter and son all selected their preferred ones.

Whoa, thanks for the info. I haven’t itemized since the 2017 tax law and didn’t remember this.

It was also available for 2020 (up to $300). If you made the donation but didn’t take the deduction, you could file an amended return.

Then it is a tax credit against AGI?

It’s not a tax credit, it’s called an adjustment to AGI (and it reduces AGI). See line 10b on the 2020 1040.

Got it thanks!

The greatest gift from CARES act was the $100k retirement account withdrawal without penalty. That has accelerated my retirement by almost 2 years.

I would argue that it was waiving 2020 RMDs, but I’m in a different situation than you.