There is good news for taxpayers who want to donate before year end but don’t itemize. For 2021, those taxpayers that are taking the standard deduction will be able to take an above the line deduction for charitable deductions. For single filers, the amount is $300 and for married filing jointly, the amount is $600. The great thing about above the line deduction is that they are not subject to any threshold and you don’t have to itemize to effectively reduce your adjusted gross income. Taxpayers may already be familiar with this as this measure is an extension of the coronavirus relief from 2020.
Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult a tax, legal and accounting advisors before engaging in any transaction or submitting any IRS form.
Ramin Mohammad
Ramin Mohammad is a lawyer and CPA with over 15 years of experience including working in audits, teaching, and in big law. Ramin helps clients on both personal and business related tax issues ranging from a multitude of practice areas including tax structuring, planning and cross jurisdictional taxes. His client-base expands throughout the US and overseas offering tax consulting, tax planning and tax preparation.
